Aveva shareholders demand full auction process
Shareholders in Aveva [LON: AVV] are pressurising the UK-listed engineering-software group to pursue a full auction process, The Sunday Times reported. Richard Longdon, chief executive, received a written request from one investor to hold an open auction in the event a suitor steps forward, the report said.
Aveva’s proposed GBP 1.3bn (USD 1.9bn) merger with its France-based competitor Schneider Electric [EPA:SU] collapsed earlier this month when Aveva withdrew, amid claims the deal favoured Schneider and deterred other prospective buyers, the item said. Insiders cited in the piece said the board of Aveva held a meeting on 18 December where merger plans were discussed.
According to an unidentified investor quoted in the report, Aveva has more value for a competitor than it does as a standalone business, providing motivation for a deal.
Aveva investors are now pushing for a sale to kick off early in the new year, and believe a deal might be worth as much as GBP 1.5bn (USD 2.2bn), the report said. It added that the Germany-based conglomerate Siemens is considered the most likely acquirer, while Dassault [EPA:DSY] of France and Bedford, Massachusetts-based Aspen Technology [Nasdaq:AZPN] have shown interest in Aveva during the past few years.
Aveva is advised on deals by Lazard, which is thought likely to help the business look for new potential merger partners, the item reported.
Sunday Times