business
Laboratory Testing Company Rejects £8.9 Billion Takeover Proposal
A UK laboratory testing company has rejected a £8.9 billion bid from a Swedish private equity firm. The company's board unanimously rejected the latest proposal and is continuing a strategic review that may lead to the sale or spin-off of one of its divisions. The suitor has until May 14 to make a firm offer under City Takeover Panel rules.
May 8, 2:58 AM·1m read1 source
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A UK laboratory testing company has rejected a £8.9 billion takeover proposal from a Swedish private equity firm, the company said on Tuesday. The company stated that its board unanimously and unequivocally rejected the approach because it significantly undervalues the company and its future prospects.
The company continues to focus on a strategic review launched last month that includes considering a potential break-up of the business into two separate divisions.
The company is looking to either sell or spin off its energy and infrastructure division from its testing and assurance operations. It reported already receiving an encouraging level of interest from potential buyers for the energy and infrastructure division and is prioritising a sales-led process.
The company plans to complete the strategic review and implement any changes by the middle of next year.
It added that the ambition is to move as expeditiously as possible while ensuring the strongest outcome for shareholder value. Tuesday's approach marked the third offer from the Swedish private equity firm. The latest proposed bid would pay £58 per share, up from previous offers of £54 and £51.50 per share.
The suitor said the increased proposal delivers certain and accelerated cash value for shareholders that is superior to the range of outcomes associated with the company's standalone prospects. The suitor added there is no certainty that a formal takeover offer will be made. The suitor has until 5pm on May 14 to make a firm bid or walk away under City Takeover Panel rules.
