Renewable Energy

Osram says no plan B if shareholders reject takeover bid

Credit: REUTERS/MICHAELA REHLE

German lighting group Osram will not change its strategy if shareholders reject a private equity takeover bid that the company's management supports, its CEO said on Friday.

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BERLIN, July 5 (Reuters) - German lighting group Osram OSRn.DE will not change its strategy if shareholders reject a private equity takeover bid that the company's management supports, its CEO said on Friday.

Osram's managing and supervisory boards said on Thursday that they backed a 3.4 billion euro ($3.8 billion) takeover offer from private equity firms Bain and Carlyle.

"We have no plan B, because we have our own plan," Chief Executive Officer Olaf Berlien told journalists in a phone conference.

The offer needs a minimum 70% acceptance threshold from Osram shareholders to go through.

Berlien said it would pursue its five-year-plan, which Bain and Carlyle also supported, adding that there were no indications that the supervisory board wanted to change the management.

The likelihood of receiving another takeover offer from a competing bidder is low because no other bids had been received in the last months, he said.

Earlier on Friday, Germany's largest trade union, IG Metall, said it did not oppose the takeover offer, adding that it expected Osram's management to stick to its agreements on protecting jobs.

(Reporting by Joern Ploltz Writing by Riham Alkousaa Editing by Michelle Martin and Thomas Escritt)

((Riham.Alkousaa@thomsonreuters.com;))

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