Metso sale to Weir dependent on price raise
Weir Group's [LON: WEIR] capture of Metso [HEL: MEO1V], the Finnish industrial concern, can only happen if the listed British group's offer is raised, the Finnish-language Kauppalehti reported.
The weekday paper wrote an unsourced analysis about the takeover offer made by Weir Group, saying that the two companies are almost the same size and this would make it difficult for Weir Group to attract Metso’s shareholders with sufficient cash. A shares swap in this case is the only choice but Metso would need to receive a decent offer. Metso shareholders will only sell if the price is right, the report added.
The piece added that when news of the possible takeover was published earlier this week, it became clear the shareholders of Metso were not willing to sell.
Through its investment vehicle Solidium, the Finnish government is the second largest shareholder in Metso with an 11% stake. The largest is Swedish investor Cevian, which holds a 13.5% stake and is run by Christer Gardell, who, it is believed, is in favour of a merger, as previously reported.
Source Kauppalehti