WSP Global Pushes Forward with Arcadis Takeover Despite Board Rejection
WSP Global's Acquisition Bid for Arcadis: Key Developments and Market Reactions
WSP's Determination to Acquire Arcadis
Aug 20 (Reuters) - Canada's WSP Global on Thursday said it would press ahead with plans to acquire Arcadis, despite having two unsolicited approaches rebuffed by the Dutch engineering and consulting group.
WSP said it would prepare an offer memorandum and submit it to the Dutch financial markets regulator for review by Oct. 15, although it did not disclose whether it planned to increase its latest offer.
Arcadis' Response to WSP's Proposals
Rejection of Improved Offer
Arcadis rejected an improved proposal of 51.5 euros per share in July, after Reuters reported earlier that month that WSP was working on a possible bid. The offer valued Arcadis at about 5.4 billion euros ($6.3 billion), including debt, according to Reuters calculations.
Board Interactions and Standalone Strategy
Prior to receiving the unsolicited bids, Arcadis' executive and supervisory boards had "formally interacted" with WSP at the Canadian company's request, an Arcadis spokesperson told Reuters.
The spokesperson reiterated that both proposals fundamentally undervalued the company and were not in the interests of "shareholders, employees, clients and other stakeholders".
Arcadis' boards have a "strong conviction" in the company's standalone strategy and medium-term targets, the spokesperson added.
WSP said on Thursday that Arcadis' boards had yet to engage with it regarding a potential transaction.
Market Impact and Shareholder Sentiment
Share Price Movements
The takeover attempt has helped lift Arcadis shares to around 44 euros from about 34 euros before Reuters first reported WSP's interest, although the stock remains below WSP's latest indicated offer price.
Stakeholder Positions
Stichting Lovinklaan's Stance
Stichting Lovinklaan, an employee foundation that owns 19% of Arcadis, does not intend to support a takeover, Dutch daily FD reported on Wednesday.
Analyst Perspectives
KBC Securities analyst Kristof Samoy said he viewed Thursday's move as a final attempt by WSP to bring Arcadis' board to the negotiating table.
"One can hardly argue that this is a friendly manoeuvre," Samoy said in a note to clients. "Only a very high proposal (60 euros per share) stands a chance in our view."
Obstacles to Hostile Takeover
WSP's options for pursuing Arcadis without board support are constrained by Dutch takeover defences, including a poison-pill mechanism designed to deter hostile bids.
Additional Information
($1 = 0.8564 euros)
(Reporting by Gianluca Lo Nostro, Amy-Jo Crowley; Editing by Joe Bavier, Milla Nissi-Prussak and Matt Scuffham)
