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Bodycote shares drop after Sulzer drops its offer for the business

Bodycote shares drop after Sulzer drops its offer for the business

Shares of Bodycote International PLC, a British maker of heat treatments, fell Monday after Switzerland's Sulzer AG dropped its 1.1 billion pound (US$2.2 billion; euro1.61 billion) offer for the business.
Engineering company Sulzer had raised its offer for Bodycote twice on Friday. Still, "no agreement on a recommended transaction could be reached with the board of Bodycote," Sulzer said in a later statement.
Bodycote shares dropped 8 percent to 299 pence (US$5.97; euro4.38) in London.
Winterthur-based Sulzer offered to pay 346.5 pence (US$6.92; euro5.07) for each Bodycote share. The company's previous offer valued Bodycote at 344.5 pence (US$6.88; euro5.04) a share.
Friday's second offer was the fifth to be made to Bodycote, with the previous bids valuing the company at 325 pence (US$6.50; euro4.76) a share, 315 pence (US$6.18; euro4.61) per share and 305 pence (US$6.10; euro4.47) a share.
Macclesfield, England-based Bodycote, which supplies heat treatments for metals used by engineering industries, rejected the takeover proposals, saying they undervalued the company.
Sulzer shares gained 0.4 percent to 16.41 Swiss francs (US$13.61; euro9.97) in Zurich.
Sulzer has itself been the subject of takeover speculation recently, after a joint venture between Russian tycoon Viktor Vekselberg and Austrian investment firm Victory snapped up a 32 percent stake in the engineering firm.


Updated : 2021-06-16 23:05 GMT+08:00