German workers’ union IG Metall has rejected the recent €4.3 billion euro takeover offer by sensor firm AMS for lighting company Osram, according to a report by Reuters.
A spokeswoman reportedly said that ‘the strategy behind AMS’s offer is still not convincing.’
The rejection comes after Osram reported AMS’s €38.50 per-share offer on August 12th and stated that ‘the financing concept presented appears binding and viable.’ Osram confirmed it was in talks with AMS shortly after.
It is not the first time that IG Metall – which has more than 2.2 million members – has voiced opposition to the deal. On 24th July IG Metall released a statement opposing a ‘potential takeover of Osram by AMS’*, suggesting that the offer has been in talks for some time. At the time, IG Metall stated that ‘the necessary financing is absolutely irresponsible’* and ‘there are signs that the AMS offer will break up and massively downsize the company to create ‘synergies’. That is not acceptable to us.’*
IG Metall’s rejection is the latest development in bids to acquire Osram. In early July, Osram received a public takeover offer from private equity firms Bain Capital and The Carlyle Group for €35 per share – approximately €4 billion in enterprise value.
*quotes indirect – translated by Google