Arcadis Shares Drop After WSP Global Abandons €5.2 Billion Takeover Bid
WSP Global Ends Pursuit of Arcadis
Market Reaction to Abandoned Takeover
Sept 23 (Reuters) - Shares in consultancy and engineering firm Arcadis dropped around 7% on Wednesday after Canadian peer WSP Global abandoned its potential takeover of the Dutch company.
Timeline of Events
WSP's decision, disclosed after European stock markets closed on Tuesday, ends a months-long pursuit whose existence was first reported by Reuters in July.
Reasons Behind the Failed Deal
The Canadian group said a combination could only be pursued through a negotiated transaction supported by Arcadis' board and that it saw no path to advance a deal without the company's cooperation.
Arcadis' Response to WSP Offers
Rejection of Proposals
Arcadis on Wednesday reiterated that its executives had unanimously rejected WSP's offers for "fundamentally undervaluing Arcadis' intrinsic value, strategic position and future prospects".
Details of the Takeover Bid
The last of two unsolicited proposals valued Arcadis at €51.50 per share, or about €5.2 billion ($5.9 billion) including debt.
Impact on Arcadis Shares
Stock Performance
Shares in Arcadis fell to the bottom of Europe's benchmark Stoxx 600 index and were on track for their worst day since February as of 0830 GMT.
Exchange Rate Reference
($1 = 0.8764 euros)
Reporting Credits
(Reporting by Jakob Van Calster; editing by Bartosz Dabrowski)
