German group raises drugs bid
Thursday 13 April 1995
The German group GEHE has lifted the stakes in its battle to win control of the pharmaceuticals wholesaler AAH, raising its offer by 6 per cent to £400m yesterday. GEHE said the new terms were final.
GEHE quickly followed up news of the higher offer with a swoop on its target's shares, with the brokers Cazenove scooping up 13.8 per cent by close of play yesterday. GEHE now owns or has acceptances for 17.78 per cent of AAH's equity.
The new offer was rejected by AAH, but although the shares put on 7p to 442p yesterday, they remained stubbornly below the new offer price of 445p, suggesting that the market believed that the latest move may deliver the company to its predator.
Analysts were generally of the opinion that any chance of the British company finding a white knight at this late stage in the bid process was remote, while GEHE had now offered just enough to tip shareholders in its favour.
Dieter Kammerer, chairman of GEHE's management board, said the new offer was worth 20.7 times AAH's estimated earnings of 21.5p for the year to March.
Claiming the latest deal was "more than generous", Dr Kammerer said: "It takes full account of the rationalisation that has taken place and the magnitude of the task involved in trying to improve AAH's performance."
John Padovan, Dr Kammerer's opposite number at AAH, called on shareholders to reject the higher terms, "which the board continues to regard as . . .an opportunistic attempt to acquire the company on the cheap".
On Tuesday, AAH sent shareholders its latest and last defence document, claiming that cost savings could hit £14m by the 1996-97 financial year.
- 1 Howard Jacobson: Let's see the 'criticism' of Israel for what it really is
- 3 Belgium fan Axelle Despiegelaere lands L'Oreal campaign after World Cup viral photo
- 4 Britney Spears sings 'Alien' without Auto-Tune in embarrassingly brilliant leaked audio clip
- 5 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Mick Jagger denies being World Cup curse and reason for Brazil’s embarrassing defeat
Israel-Gaza crisis: ‘We just want it to end… We don’t deserve to live like this’
Israel-Gaza crisis: Eight killed in Gaza Strip cafe while watching World Cup semi-final
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
Vanessa Feltz criticises 'vile' reaction to Rolf Harris allegations
iJobs Money & Business
£38000 - £42000 per annum + competitive: Real Staffing: Required skills:Previo...
£60000 - £75000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£60000 per annum: Harrington Starr: A leading provider in investment managemen...
£600 - £700 per day: Harrington Starr: AVS, JVS Openlink Endur Developer JVS, ...