EQT makes fourth takeover bid for UK's Intertek, now worth $12.7 billion
Details and Implications of EQT's Takeover Bid for Intertek
Background of the Takeover Bids
May 12 (Reuters) - Swedish private equity group EQT AB made a sweetened and final 9.4 billion pound ($12.7 billion) takeover proposal for Intertek on Tuesday, after three of its earlier bids were rejected by the British product testing company.
Market Reaction and Offer Details
Share Price Movement
Shares in the London-listed firm were up 4.7% at over 52 pounds in early trade, after EQT said Intertek shareholders will receive 60 pounds per share in cash and a possible 1.1 pounds in fiscal 2025 dividend, under the latest offer.
Previous Rejections and Investor Pressure
Intertek has snubbed EQT several times for undervaluing it and has instead chosen to focus on a review which could see it split in two, even as its investors PrimeStone Capital and Palliser have urged Intertek's board to engage with EQT.
Before the latest offer, PrimeStone had already said EQT's offer had not "significantly undervalued" Intertek.
Intertek's Strategic Review
Company Response and Alternatives
Intertek, which launched its review a day after receiving EQT's first bid in early April, has argued that a takeover carried high execution risks, and said it had got "encouraging levels" of interest for its energy and infrastructure unit.
EQT's Position on the Proposal
"EQT believes the final proposal delivers certain and accelerated cash value at a full valuation for Intertek shareholders, superior to the range of outcomes associated with Intertek's standalone prospects," the private equity group said on Tuesday.
Next Steps and Timeline
Awaiting Intertek's Response
Intertek did not respond to a Reuters request for comment on the latest proposal.
Deadline for Firm Offer
The Swedish firm has until Thursday, May 14 to announce a firm intention to make an offer for Intertek.
Additional Information
($1 = 0.7377 pounds)
(Reporting by Prerna Bedi, Yamini Kalia and Akita Bora in Bengaluru; Editing by Subhranshu Sahu and Keith Weir)
