EQT's New Offer#
EQT has made a third takeover proposal for Intertek, increasing its offer to £58 per share. This values the British testing and inspection company at £8.93 billion, which is approximately $12.08 billion.
Share Price Reaction#
Following the announcement, Intertek shares rose nearly 7% during trading in London by 08:32 GMT. The new offer represents a 54% premium compared to the stock’s closing price of 3,770 pence on April 9, the day before EQT's initial bid was disclosed.
Previous Offers and Rationale#
This latest bid surpasses EQT’s previous offer of £54 per share, which Intertek rejected last month. EQT believes that this new proposal offers "certain and accelerated cash value" for shareholders, suggesting it is a better option than the potential outcomes if Intertek continues to operate independently.
Deadline for EQT#
Under U.K. takeover regulations, EQT has a deadline of May 14 to either confirm its intention to proceed with the offer or withdraw. This comes after Intertek announced a strategic review last month, considering a possible spin-off of its Energy & Infrastructure division, which could lead to the company operating as two separate entities.