Alfa Laval cuts acceptance level requirement in Neles takeover bid

Swedish engineer Alfa Laval AB on Thursday said it will lower the acceptance level needed in its bid for Finnish valve maker Neles Oyj to over 50% of shares and votes from two-thirds, in a blow to top Neles holder Valmet Oyj.

Adds background, detail

STOCKHOLM, Oct 15 (Reuters) - Swedish engineer Alfa Laval AB ALFA.ST on Thursday said it will lower the acceptance level needed in its bid for Finnish valve maker Neles Oyj NELES.HE to over 50% of shares and votes from two-thirds, in a blow to top Neles holder Valmet Oyj VALMT.HE.

Valmet has been opposing Alfa Laval's takeover offer, and has instead proposed a merger with Neles. This week, it said it was worried Alfa Laval could waive its two-thirds condition.

Neles' board said on Monday it continued to recommend Alfa Laval's offer, citing a lack of detail in Valmet's proposal.

"Alfa Laval believes that it has presented a fair offer to all Neles' shareholders, supported by the Neles Board of Directors," Alfa Laval Chief Executive Tom Erixon said in a statement.

"The public tender offer, and the rationale behind it, is based on a clear industrial logic and a belief that the combined company will embark on a growth journey for many years to come."

Valmet has raised its stake in Neles since Alfa Laval made a 11.50 euros-per-share bid in July. It owned 29.5% at September-end.

Alfa Laval said it would extend the acceptance period to Oct. 30 from Oct. 22.

(Reporting by Johannes Hellstrom; Editing by Subhranshu Sahu and Christopher Cushing)

((johannes.hellstrom@thomsonreuters.com; +46850242388; Reuters Messaging: johannes.hellstrom.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ALFA

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More