Business · Companies · 2 hrs ago
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%.
Tata Motors raised its offer for Iveco by 2% to €14.40 per share on 9 October.
The revised offer is described by Tata Motors as its best and final price.
By the latest available count, shareholders had accepted the offer for 28.4% of Iveco’s shares.
Three major investors—Davidson Kempner, Syquant Capital and Petrus Advisers—had not tendered their shares.
The offer deadline is 26 October, and the required acceptance threshold is 80% or 95%, depending on an Iveco shareholder vote.
- Who
- Tata Motors is seeking to acquire Iveco Group. Three major investors have not tendered their shares.
- What
- Tata Motors raised its offer to €14.40 per share, but acceptances stood at 28.4% by the latest available count.
- When
- The offer price was raised on 9 October. The offer deadline is 26 October.
- Where
- Iveco is an Italian commercial vehicle maker.
- Why
- Tata Motors said it raised the price to account for delays in regulatory approvals. Petrus Advisers said the original offer undervalued Iveco.
Tata Motors
Petrus Advisers
Valuation
Tata Motors
Tata Motors said the previous price represented a full and fair valuation of Iveco.
Petrus Advisers
Petrus said the offer significantly undervalued Iveco relative to its peers.
Offer terms
Tata Motors
Tata Motors raised the price to €14.40 per share and called it its best and final offer.
Petrus Advisers
Petrus said shareholders were not receiving an appropriate share of the transaction’s synergy value and should be compensated for the 15-month period before expected closing.
The offeror hereby specifies that the new price is its best and final determination of the consideration under the offer and will not be increased further.
The offer significantly undervalues Iveco relative to its peers.
Second, Iveco’s shareholders do not receive an appropriate share of the synergy value this transaction creates: value Tata Motors has itself described to its own investors as substantial
Third, shareholders should be compensated for the 15-month period between the announcement of the transaction and its expected closing.
Tata Motors’ tender offer opened.
Petrus Advisers publicly rejected the original offer, arguing it undervalued Iveco.
Tata Motors raised its offer price by 2% to €14.40 per share.
Iveco shareholders are due to vote on a relevant resolution at an extraordinary general meeting.
The tender offer is due to close.
- Revised offer
- €14.40 per share
- Price increase
- 2% on 9 October
- Latest acceptances
- 28.4% of Iveco shares
- Exor stake tendered
- 27.06%
- Holdout investors’ combined stake
- About 20.4% of Iveco’s common shares
- Offer deadline
- 26 October
Sources
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