Thermo Fisher’s Raised Qiagen Bid Fails to Win Key Investor
Thermo Fisher Sweetens Qiagen Bid to Woo Recalcitrant Investors
(Bloomberg) -- U.S. laboratory equipment maker Thermo Fisher Scientific Inc. raised its takeover offer for Dutch test-maker Qiagen NV but not enough to satisfy a top shareholder that’s looking to rally investors to demand a higher price.
Investors would now get 43 euros ($49) in cash, up from 39 euros under the prior offer. That’s a premium of about 35% to Qiagen’s closing price in early March, before Thermo Fisher first disclosed its plans, the companies said in a statement Thursday. Qiagen’s board backed the new price.
Davidson Kempner, a top investor in Qiagen, called the higher bid a “step in the right direction” but one that falls short of the company’s fair value. In a letter, the fund manager said that a price between 48 euros and 52 euros a share is more appropriate and reiterated its position from earlier this week that it will reject the current offer and wants other shareholders to do the same.
Qiagen sells products for food and forensic testing, but most importantly, it has ramped up production this year to supply tests and chemicals for the coronavirus. Thermo Fisher has faced pressure to sweeten its bid, especially after the Dutch company this week said annual sales may rise as much as 18%, fueled by the pandemic.
The purchase would rank as one of Thermo Fisher’s largest after the company spent $13.6 billion for Life Technologies Corp. to gain DNA-testing capabilities in 2014. Deals have heated up in the industry after a slow start to the year, with this coming one day after Gilead Sciences Inc. agreed to buy Forty Seven Inc. for about $4.9 billion to advance into cancer treatments.
“Industry dynamics have changed considerably in the past few months, creating tailwinds and headwinds for our businesses,” Marc Casper, Thermo Fisher’s chief executive officer, said in the statement. “Both of our companies are playing important roles in helping customers to battle the Covid-19 pandemic.”
JPMorgan and Morgan Stanley are advising Thermo Fisher. Qiagen hired Goldman Sachs and Barclays Bank.
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