Intertek looks set to become the latest FTSE 100 company to fall into foreign hands after it suggested it would back a £10.6billion takeover by Swedish private equity.
In yet another blow to the London stock market, the board of the testing and certification firm said it was ‘minded to recommend’ that investors accept a £60 a share offer from EQT.
The comments came a day after Stockholm-based EQT tabled a fourth and ‘final’ offer for Intertek having seen three earlier bids worth £51.50, £54 and £58 a share turned down.
Intertek looks set to be the third FTSE 100 firm to be snapped up by foreign buyers so far this year after two-century old City institution Schroders backed a £9.9billion takeover by US rival Nuveen and Lloyd’s of London underwriter agreed to be bought by Zurich Insurance in an £8.1billion deal.
‘Yet another FTSE name goes,’ said Neil Wilson, a strategist at trading firm Saxo.
Under seige: A host of London-listed firms have been approached by foreign bidders
Blue-chip energy group DCC is also a bid target having last month turned down a £5billion offer from US giants Energy Capital Partners and KKR.
Meanwhile, a host of London-listed firms outside the FTSE 100 have also been approached, with Gamma Communications today revealing American private equity group Providence Equity Partners is among those it is in discussions with over a deal.
Intertek shares rose 8 per cent to £57.20 – just below the £60 offer price – while Gamma gained 5.5 per cent to leave it valued at £855million.
Analysis by AJ Bell shows the total value of ‘live’ takeover approaches for London-listed companies so far this year has hit £36.1billion – well ahead of the 2025 total of £29billion.
‘One by one companies are being picked off the UK stock market,’ said Dan Coatsworth, head of markets at AJ Bell.
Intertek, which provides testing, assurance and certification services for companies around the world to help deal with risks in their operations and supply chains, has come under pressure from shareholders to engage with EQT having rejected a string of bids.
Palliser Capital this week described the latest £60 a share offer as ‘an attractive opportunity for shareholders’ while PrimeStone Capital praised the board’s ‘resolute negotiating stance’ but urged the board to secure a deal with EQT at this price.
And Matt Peltz, the son of activist investor Nelson Peltz and another Intertek investor, said the £60 offer meant it was now ‘time to transact’.
In a statement to the stock market today, Intertek said: ‘Having carefully evaluated the final proposal, together with its advisers, and following significant engagement with its shareholders, the board of Intertek considers that the financial terms of the final proposal deliver value in cash to Intertek shareholders at a level which it would be minded to recommend to Intertek shareholders.’
Coatsworth said: ‘There is a right price for everything as Intertek investors have just found out. Having batted away bids from EQT faster than a fly swatter, Intertek has now changed its tune following another increased offer.’
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