Intertek said on May 13 it is leaning toward recommending EQT's fourth and final takeover offer after talks with shareholders, as the Swedish private equity firm raised its bid for the UK testing company to £60 a share in cash. [1, 2, 3]
EQT said the proposal values Intertek at about £9.2 billion, while the company described the bid as its fourth and final approach. Intertek is based in London and provides product and laboratory testing services. [1, 2, 3, 4]
The board had previously turned down three earlier offers from EQT, according to the report, before softening its stance after pressure from investors. The Guardian said the latest bid came after a lengthy pursuit and said shareholder pressure played a role in the shift. [5, 4]
EQT, a Swedish private equity firm, has also proposed a dividend of up to £1.077 a share. Intertek said it was "minded to recommend" the offer and said it remains "highly confident in Intertek’s standalone strategy and the value creation opportunity outlined in the strategic review." [1, 4]
The latest reporting said activist investor Matt Peltz’s Lost Coast Collective, which holds 1.2% of Intertek, pressed the company to engage with EQT. Peltz said "the market clearly does not believe in the team’s ability to execute" and urged the board to "recognise the merits of EQT’s proposal and engage in good faith to complete the t". [5, 4]
Intertek’s board has not yet given final approval, but the company said it was leaning toward recommending the bid after the latest engagement with shareholders. The next step is a formal board recommendation or further deal terms from EQT. [2, 3, 4]
