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Brookfield mulls $7.4 billion bid for Spain’s Grifols, El Confidencial says
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(Reuters) – Canadian fund Brookfield plans to offer about 7 billion euros ($7.4 billion) for Spanish drugmaker Grifols after finishing
(Reuters) – Canadian fund Brookfield plans to offer about 7 billion euros ($7.4 billion) for Spanish drugmaker Grifols after finishing due diligence, news website El Confidencial reported on Monday, citing sources close to the matter.
Brookfield is evaluating offering 10.5 euros per share in a public tender offer, El Confidencial said, below Grifols’ closing market price on Friday of 11.125 euros.
The Canadian private equity firm said in September it was interested in launching a takeover bid jointly with the Grifols family, pending successful completion of due diligence.
The company has lost about 30% of its market value since January, when short-seller fund Gotham City Research accused Grifols of overstating earnings and understating debt, which Grifols denied.
Spokespeople at Brookfield and Grifols did not immediately respond to requests for comment.
($1 = 0.9486 euros)
(Reporting by Javi West Larrañaga. Editing by Inti Landauro and Mark Potter)
Due diligence is the process of investigating a business or investment opportunity to confirm all material facts and assess risks before proceeding with a transaction.
A public tender offer is a bid to purchase some or all of shareholders' shares in a corporation at a specified price, usually at a premium over the current market price.
Market value is the price at which an asset would trade in a competitive auction setting. It reflects the current worth of a company based on its stock price.
A takeover bid is an offer to purchase some or all of shareholders' shares in a company, often made by another company or investor.
A private equity firm is an investment company that uses its own funds or capital raised from investors to acquire equity ownership in private companies.
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