Tata Motors raises Iveco offer as major shareholders hold back

Tata Motors is trying to buy Iveco, an Italian commercial vehicle maker.

It raised its offer by 2% to €14.40 per share on October 9, calling this its best and final price.

The increase followed objections from investor Petrus Advisers, which said the original offer undervalued Iveco.

Iveco’s largest shareholder, Exor, has tendered its stake, but three other major investors—Davidson Kempner, Syquant Capital and Petrus Advisers—have not.

Together, they hold about 20.4% of Iveco’s common shares, and their decisions could affect whether Tata secures enough shareholder support.

The offer had received acceptances for 28.4% of shares at the latest count, and is due to close on October 26.

Tata needs acceptances for at least 80% of shares if shareholders approve a relevant resolution at an October 16 meeting; otherwise, the threshold is 95%.