Industrial heavyweight Spectris has nodded to a colossal £3.8bn acquisition by American private equity firm Advent, yet whispers of a bidding tussle are in the air with KKR potentially crafting a counter-offer.
The FTSE 250-listed company now carries a hefty price tag of £37.73 per share under the agreement, prompting its shares to leap by an impressive 13.5 per cent at market open on Monday, reaching approximately 3,726, as reported by .
KKR, no stranger to significant market plays, has thrown its hat into the ring, acknowledging its readiness to duel with Advent over a Spectris takeover. The powerhouse confirmed it's deep into "advance stages of due diligence" and is setting up finances for a bid following the public announcement of the takeover.
With intentions clear, KKR has been in proactive discussions with the Spectris board since its initial proposition on June 2.
Communicating to its stakeholders, KKR urged them "strongly encourages shareholders to take no action with regards to the Advent offer."
Spectris another blow to London market
The pact inked between Spectris and Advent, which came to light earlier this month, signals yet another notch against the LSE as domestic entities shed their listings in the face of international titans' advances.
London's beleaguered bourse has stumbled through an exodus of delistings in recent times - illustrated by the Canadian consultancy titan's grab of engineering consultant Ricardo, coupled with homegrown quantum computing trailblazer Oxford Ionics succumbing to a buyout from New York rival IonQ.
Conversations with City AM analysts have highlighted the irresistible allure of º£½ÇÊÓƵ stocks, tagged as "cheap and undervalued", to those hunting for investment steals.
An employer of over 7,000 individuals within the º£½ÇÊÓƵ, Spectris carves its niche in propelling technological advancements for entities in the pharmaceutical and semiconductor realms.
Mark Williamson, Chairman of Spectris, stated: "The board... believes that Advent's offer recognises the attractiveness of Spectris and represents strong and immediate cash value for shareholders at an attractive premium of 84.6 per cent to the undisturbed share price."
Shonnel Malani, Managing Partner at Advent International, noted that the acquisition served as a "vote of confidence" in British engineering and innovation, adding: "We are dedicated to accelerating Spectris' growth and enhancing its leadership in precision measurement."
