XP Power revealed that it rejected three offers from its US rival Advanced Energy Industries
Shares in XP Power rose almost 50 percent after becoming the latest London-listed company to be targeted by foreign bidders.
In a statement to investors yesterday, the high-voltage power supply company revealed it had rejected three “indicative, opportunistic and highly conditional proposals” from US rival Advanced Energy Industries.
The latest offer, submitted on May 7, valued XP Power at 1,950 pence per share, or £468 million, a figure the company, founded in the United Kingdom in 1988 and now based in Singapore, said “undervalues fundamentally the company and its prospects”. ‘.
The news saw its Share jump 47.8 per cent, or 556p, to 1720p.
XP Power joins a growing list of London-listed companies to be targeted, amid what has been described as a “feeding frenzy” of acquisitions.
Australian mining giant BHP has until 5pm today to make a firm bid for Anglo American or walk away, having already seen two bids worth £31bn and £34bn rejected.
Video games company Keywords Studios said on Monday it was “willing to recommend” a £2bn bid from Swedish giant EQT, having rejected four previous proposals.
And earlier this month, Royal Mail owner International Distribution Services (IDS) backed a £3.5bn bid from Czech billionaire Daniel Kretinsky in a move that sent shockwaves through both the City and Westminster.
In a seven-month hunt for XP Power, Advanced Energy Industries first submitted a bid of 1,700 pence (or £339 million) in late October. The Colorado-based company returned with an improved offer of 1,850 pence (or £369 million) weeks later.
Last night, Advanced Energy Industries said its latest offer represents a “compelling and very attractive opportunity” for shareholders.
Steve Kelley, the company’s president and CEO, added: “By combining our technical capabilities, we believe we will be able to better meet the growing needs of our customers.”
Under takeover rules, Advanced Energy has until June 18 to make a formal offer or withdraw.
