Nelson Peltz’s Son Builds Stake in UK's Intertek, Ft Reports

Nelson Peltz’s son builds stake in UK's Intertek, FT reports

Matt Peltz’s Investment in Intertek and Related Takeover Developments

Background of the Stake Acquisition

April 23 (Reuters) - Matt Peltz, the son of activist investor Nelson Peltz, has built a stake in British product-testing firm Intertek via his hedge fund, the Financial Times reported on Thursday, citing a public filing.

Takeover Interest and Offers from EQT AB

Details of EQT’s Takeover Bids

Hedge fund Lost Coast Collective's disclosure comes amid takeover interest in the London-listed company from Swedish private equity group EQT AB.

EQT sweetened its offer for Intertek to 54 pounds a share in cash on Wednesday, after the company rejected an earlier 51.50 pounds a share bid on the grounds that it undervalued the firm.

The new offer values the company at 8.3 billion pounds ($11.19 billion), according to Reuters calculations.

Lost Coast Collective’s Position and Public Filing

Size and Value of the Stake

The Florida-based hedge fund Peltz founded last year has built a more than 1% stake in Intertek, which is worth about 88 million pounds, the report said, citing the public filing made this week.

Responses and Comments

Intertek and EQT did not immediately respond to Reuters' request for comment. 

Peltz's hedge fund told the newspaper that it had commended Intertek's board and management for rejecting the initial offer, which it said was "way below intrinsic value", but declined to comment on EQT’s improved bid.

Reuters could not reach Lost Coast for comment.

Strategic Implications and Future Plans

First Public Position by Lost Coast

The Intertek investment is the first public position disclosed by Lost Coast since Peltz launched the firm last year, the newspaper said, citing people familiar with the matter.

Potential Break-up and Corporate Strategy

According to FT, Peltz began buying Intertek stock last year and had already spoken with Intertek's management, urging a potential break-up.

Company’s Response to Takeover Pressure

Last week, the company announced that it was considering splitting into separate energy/infrastructure and testing/assurance businesses.

Analysts have since described the move as "defensive" following the disclosure of EQT's first takeover bid.

Additional Information

($1 = 0.7415 pounds)

(Reporting by Shivani Tanna in Bengaluru; Editing by Harikrishnan Nair)