Backtrack: Colorado-based Advanced Energy Industries said it has “no intention of making a bid” for London-listed XP Power
XP Power shares plunged after a US rival abandoned plans to buy the company.
The stock fell 10.1 per cent, or 158 pence, to 1,402 pence after Colorado-based Advanced Energy Industries said it has “no intention of making a bid” for the London-listed group.
The announcement came after the Americans revealed last month that XP Power had rejected three takeover proposals since October, including a final one in May worth 1,950 pence per share (or £468m).
At the time, XP Power called the offers “highly conditional” and “opportunistic.”
The company, which was set up in the UK in 1988 and designs power converters for blue-chip companies, insisted the £468m offer still “fundamentally undervalues the company and its prospects”.
In an update yesterday, Advanced Energy said it has since “tried to engage with XP Power’s board of directors” but complained of a “lack of progress” on pricing.
The American company stated that this has “prevented it from accessing the due diligence necessary to make a firm offer.”
XP Power responded by saying it “has had no contact with Advanced Energy” since its previous offers were rejected.
Russ Mold, chief investment officer at AJ Bell, said: “It’s clear this acquisition deal is a failure.”
The row comes as analysts warn that “relentless” takeover activity on the London stock market amounts to a “frenzy” as potential buyers hunt for bargains.