WSP Global Persists With Arcadis Takeover Bid Amid Board Resistance
WSP Global's Ongoing Pursuit of Arcadis
Background of the Takeover Attempt
Aug 20 (Reuters) - Canada's WSP Global on Thursday reconfirmed its intention to take over consulting and engineering group Arcadis, after the Dutch firm rebuffed the first two bids that had valued it at up to €5.4 billion ($6.3 billion).
Details of the Bids and Offer Price
WSP did not disclose a new offer price, but said in a statement it would prepare an offer memorandum and submit it to the Dutch financial watchdog for review and approval by October 15.
Arcadis rejected an improved proposal of €51.5 per share in July, after Reuters reported earlier in the month that the Canadian company had been working on a possible bid.
Valuation and Market Reaction
The latest price offered by WSP would value Arcadis around €5.4 billion including debt, according to Reuters' calculations. Arcadis opposed both bids, saying they undervalued the company.
Since the takeover attempt was announced, Arcadis' market value has recouped some of the losses incurred in recent years, with the share price jumping to around €44 from €34 a day before the Reuters report.
Stakeholder and Board Responses
Stichting Lovinklaan's Position
Stichting Lovinklaan, an employee foundation which holds the largest stake in Arcadis with 19% of shares, does not intend to support the takeover, Dutch daily FD reported on Wednesday.
Arcadis Board's Engagement
WSP also said on Thursday that the Arcadis boards had yet to engage with it.
Analyst and Market Perspectives
Analyst Commentary
In a note to investors, KBC Securities analyst Kristof Samoy said he suspected this was WSP's final attempt to force the Arcadis board to the negotiating table.
"One can hardly argue that this is a friendly manoeuvre," Samoy said. "Only a very high proposal (€60 per share) stands a chance in our view."
Challenges Facing WSP
WSP's options for pursuing Arcadis without board support appear limited due to the Dutch corporate anti-takeover mechanism called poison pill, which is designed to thwart hostile acquisitions.
Additional Information
($1 = 0.8564 euros)
(Reporting by Gianluca Lo Nostro; Editing by Joe Bavier and Milla Nissi-Prussak)
