By Peter Lavelle
The management at Dutch office equipment brand Océ have sent a letter to shareholders, promising to ease their concerns that the $1.17b takeover bid from Canon for 85% of Océ undervalues the firm. The meeting will happen on Friday.
Last month Hermes Asset Management and Orbis Portfolio Management, who own together 13.3% of Océ shares, told Océ management they would withhold their tender.
The firms want reassurance that Océ will safeguard minority shareholder interests, if Canon gains a controlling share. In addition, they request an outline of the savings to be made from the proposed takeover.
Yesterday Hermes received a letter from Océ Chief Executive Rokus Van Iperan saying he would address questions to this effect in an extraordinary shareholders meeting on 12 February. Hermes said it looked forward to the meeting.
In recent days, Canon has rejected calls from Hermes to raise their $1.17b takeover bid. Instead, given the possibility that their 85% claim will be rejected, Canon may offer to buy 70% of Océ for the same amount – a marked premium.
This move compromises Hermes’ power to ask a higher price, while encouraging other shareholders to tender their stake.
Canon has indicated that it will let Océ operate alone for the first three years. It is possible the Japanese brand will seek 100% of Océ after that period.
Speaking to ProPrint.com, Océ Senior Vice-President Jan Hol said that shareholders “have three weeks to go to make up their minds in regards to tendering their shares.”
Assuming that Hermes’ concerns are resolved, the Canon Océ takeover will be completed two weeks after.
Sources
Steven Kiernan, ‘Oce Gives Update on Canon Deal and Reveals Ipex Plans,’ ProPrint.com, 10 February 2010.
Mariko Yasu, ‘Canon Says It Will Stick To Oce Offer, Defying Funds,’ BusinessWeek.com, 10 February 2010.
Maud van Gaal, ‘Oce Will Answer Canon Bid Questions st Meeting, Hermes Says,’ Bloomberg.com, 9 February 2010.
Harro ted Wolde, ‘Oce to Address Concerns on Canon Offer – Hermes,’ Reuters.com, 9 February 2010.
The management at Dutch office equipment brand Océ have sent a letter to shareholders, promising to ease their concerns that the $1.17b takeover bid from Canon for 85% of Océ undervalues the firm. The meeting will happen on Friday.
Last month Hermes Asset Management and Orbis Portfolio Management, who own together 13.3% of Océ shares, told Océ management they would withhold their tender.
The firms want reassurance that Océ will safeguard minority shareholder interests, if Canon gains a controlling share. In addition, they request an outline of the savings to be made from the proposed takeover.
Yesterday Hermes received a letter from Océ Chief Executive Rokus Van Iperan saying he would address questions to this effect in an extraordinary shareholders meeting on 12 February. Hermes said it looked forward to the meeting.
In recent days, Canon has rejected calls from Hermes to raise their $1.17b takeover bid. Instead, given the possibility that their 85% claim will be rejected, Canon may offer to buy 70% of Océ for the same amount – a marked premium.
This move compromises Hermes’ power to ask a higher price, while encouraging other shareholders to tender their stake.
Canon has indicated that it will let Océ operate alone for the first three years. It is possible the Japanese brand will seek 100% of Océ after that period.
Speaking to ProPrint.com, Océ Senior Vice-President Jan Hol said that shareholders “have three weeks to go to make up their minds in regards to tendering their shares.”
Assuming that Hermes’ concerns are resolved, the Canon Océ takeover will be completed two weeks after.
Sources
Steven Kiernan, ‘Oce Gives Update on Canon Deal and Reveals Ipex Plans,’ ProPrint.com, 10 February 2010.
Mariko Yasu, ‘Canon Says It Will Stick To Oce Offer, Defying Funds,’ BusinessWeek.com, 10 February 2010.
Maud van Gaal, ‘Oce Will Answer Canon Bid Questions st Meeting, Hermes Says,’ Bloomberg.com, 9 February 2010.
Harro ted Wolde, ‘Oce to Address Concerns on Canon Offer – Hermes,’ Reuters.com, 9 February 2010.
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