Swedish private equity group EQT AB (EQTAB.ST) proposed a final 9.4 billion pound ($12.7 billion) takeover bid for Britain's Intertek (ITRK.L) on Tuesday, after the product testing firm rejected three previous approaches citing undervaluation.
London-listed Intertek said it was reviewing the sweetened fourth proposal. Its shares were trading 6.4% higher at 53 pounds at 0832 GMT, but are still lagging the proposed offer price and their October 2020 peak of roughly 65 pounds.
EQT, whose previous proposals were worth 51.5 pounds, 54 pounds and 58 pounds per share, said Intertek shareholders will receive 60 pounds per share in cash and a possible 1.1 pounds in fiscal 2025 dividend, under the terms of its latest bid.
Intertek has snubbed EQT several times over the past month and has instead backed its review which could see it split in two, even as Intertek investors PrimeStone Capital and Palliser urged the board to engage with EQT.
PrimeStone and Palliser did not immediately respond to requests for comment on the latest EQT proposal.
EQT on Tuesday argued that its final proposal delivered "certain and accelerated cash value", "superior" to Intertek's standalone prospects.
DEADLINE LOOMS FOR FORMAL OFFER
Many analysts viewed the move as defensive, but some have said that proposals from other parties were also possible, without naming any.
Under British takeover rules, if Intertek rejects EQT's final bid, the firm would be barred from participating in a takeover for at least six months, unless in special situations. EQT has until Thursday to make a formal offer or walk away.
"We believe ITRK investors, some of whom have expressed that any offer would need to start with a '6', should encourage the board to seriously engage with EQT," RBC Capital Markets analysts said.
($1 = 0.7377 pounds)
