Metso, Outotec Merger Would Make Strategic Sense, DNB Says
2014-06-02 10:13:19.414 GMT
By Gaurav Panchal
June 2 (Bloomberg) -- Metso/Outotec merger could be back on
the table following Weir’s exit, DNB says.
* See strategic rationale for all-share merger between the two
* Cites Service operations efficiency, competitive full-
value chain offering, equipment offering bundling,
effective O&M offering and stronger balance sheet
* Assuming Metso paid a 30% premium (~EU11-shr for Outotec) in
all-share merger, Metso shareholders would own 68% of
combined company, still be ~15% better off vs current share
price: DNB
* Continues to rate Metso sell, PT EU25 as failure of Weir
deal likely to be main share price driver short-term
* With Metso up 20% since Weir’s bid in April, risk market
could react negatively to Metso being acquirer rather
than the acquired: DNB
* May 28: Solidium Says Now ‘Not Right Time’ for Weir/Metso
Deal
* Solidium owns 11.1% of Metso, 10% of Outotec; activist
shareholder Cevian Capital owns 13.3% of Metso:
Bloomberg data
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
--With assistance from Benjamin Dow in Moscow.
To contact the reporter on this story:
Gaurav Panchal in London at +44-20-7392-0511 or
gpanchal2@bloomberg.net
To contact the editors responsible for this story:
Andrew Rummer at +44-20-7073-3722 or
arummer@bloomberg.net
Brian Lysaght
2014-06-02 10:13:19.414 GMT
By Gaurav Panchal
June 2 (Bloomberg) -- Metso/Outotec merger could be back on
the table following Weir’s exit, DNB says.
* See strategic rationale for all-share merger between the two
* Cites Service operations efficiency, competitive full-
value chain offering, equipment offering bundling,
effective O&M offering and stronger balance sheet
* Assuming Metso paid a 30% premium (~EU11-shr for Outotec) in
all-share merger, Metso shareholders would own 68% of
combined company, still be ~15% better off vs current share
price: DNB
* Continues to rate Metso sell, PT EU25 as failure of Weir
deal likely to be main share price driver short-term
* With Metso up 20% since Weir’s bid in April, risk market
could react negatively to Metso being acquirer rather
than the acquired: DNB
* May 28: Solidium Says Now ‘Not Right Time’ for Weir/Metso
Deal
* Solidium owns 11.1% of Metso, 10% of Outotec; activist
shareholder Cevian Capital owns 13.3% of Metso:
Bloomberg data
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
--With assistance from Benjamin Dow in Moscow.
To contact the reporter on this story:
Gaurav Panchal in London at +44-20-7392-0511 or
gpanchal2@bloomberg.net
To contact the editors responsible for this story:
Andrew Rummer at +44-20-7073-3722 or
arummer@bloomberg.net
Brian Lysaght