Swedish private equity firm EQT AB raised its bid to buy Britain’s Intertek to about 8.93 billion pounds ($12 billion) on Tuesday after the product testing firm rebuffed its previous proposals on grounds it undervalued the company.
This is the third offer in three weeks EQT has made for Intertek after the British company turned down an initial 51.50 pound per-share proposal and also a sweetened 54 pound per-share bid. London-listed Intertek’s shares jumped 9.6% to 52.64 pounds on the news, but traded significantly lower than the new 58 pound-per-share proposal submitted by EQT.
The stock has surged more than 20% since EQT first disclosed its interest in the company.
Intertek, which helps companies ensure their products, operations and supply chains meet quality, safety and sustainability standards, is exploring plans to split its two businesses to drive growth and boost shareholder returns.
Plans of a split came a day after EQT made its first approach.
“EQT clearly wants to own this asset and seems to recognise the structural growth and the financial attractions of the business, which the market sadly did not,” Panmure Liberum analyst Joe Brent told Reuters.
“The share price seems to suggest that a break (up of Intertek) is still very likely, which we do not agree with.”
EQT said the improved proposal would deliver accelerated cash value for Intertek shareholders, superior to possible outcomes associated with Intertek’s standalone prospects.
Intertek did not immediately respond to Reuters’ request for comment on the new offer. It is among a handful of FTSE 100 companies that have attracted takeover interest this year, including DCC, Schroders and Beazley.