Axis-Shield recommends Alere's higher offer
Axis-Shield plc (LSE:ASD; OSE:ASD) recommended that shareholders accept a takeover bid from fellow diagnostics company Alere Inc. (NYSE:ALR). Alere, which already owns 30% of Axis-Shield, increased its offer to 470p per share from 460p per share. The new offer, which values Axis-Shield at about L235 million ($365.2 million), is a 40% premium to Axis-Shield's close of 335p on July 5, the day before Alere made the original offer. The tender offer expires Oct. 24.
Axis-Shield's board said it believes the offer undervalues the company. However, Axis-Shield said that based on market conditions and feedback from shareholders, it believes the new offer could result in Alere gaining at least 75% of Axis-Shield shares, which would trigger the cancellation of Axis-Shield's listing in London. Therefore, Axis-Shield recommended shareholders accept the offer "in respect of their own beneficial shareholdings." ...