Versum Rejects Bid But Says Will Hold Talks With Germany's Merck
29 Marzo 2019 - 7:56PM
Dow Jones News
By Colin Kellaher
Versum Materials Inc. on Friday said its board rejected Merck
KGaA's unsolicited $48-a-share tender offer but said it would hold
talks for a potentially better deal with the German pharmaceutical
and specialty chemicals company.
Versum said its board determined that Merck's bid could
reasonably be expected to result in a superior proposal to Versum's
all-stock merger agreement with Entegris Inc.
Versum in January agreed to combine with Entegris in a deal that
would unite two chemical companies that make critical components
for the semiconductor industry, but Merck stepped in last month
with a proposal to buy Versum for about $5.2 billion.
The German company launched the hostile tender offer earlier
this week, taking its bid directly to Versum's shareholders after
being rebuffed by the Tempe, Ariz., company's board.
Versum on Friday said it met with Merck under a limited waiver
from Entegris, and that it will now hold further talks and provide
nonpublic information to Merck.
Entegris, based in Billerica, Mass., said it still believes its
combination with Versum is in the best interests of shareholders of
both companies, adding that the boards of both firms continue to
recommend the proposed union.
Under the current merger agreement, Versum would be required to
pay a $140 million breakup fee to Entegris if it backs out of the
deal.
Shares of Versum, which have consistently traded above $48 since
Merck made its initial bid, edged up in afternoon trading Friday.
Shares of Entegris rose nearly 2%.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
March 29, 2019 14:41 ET (18:41 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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