AMS Still Pursuing Take-Over bid After Failed Attempt

Oct 16, 2019

Shares in sensors specialist AMS and lighting group Osram fell on Monday on concerns AMS might revisit its $4.9 billion takeover bid which fell through this month.

Best known for supplying sensors for Apple’s latest iPhones, AMS had fought a fierce battle versus private equity groups in its pursuit of the larger Osram, a leader in automotive lighting.

In the end, it managed to collect 51.6% of Osram’s stock, significantly less than the required 62.5% level.

AMS had been prepared to take on 4.4 billion euros in additional debt and planned to issue new equity worth 1.6 billion euros to refinance part of the deal.

AMS is now the largest shareholder of Osram with a direct stake of 19.99%. It said on Friday it was still committed to pursuing the acquisition.

Shares in Osram, which became a takeover target after its strategy of turning itself into a high-tech company focused on LEDs and state-of-the-art laser chips did not bring the hoped-for success, fell as much as 4.5% to 39.00 euros, below the 41 euros that AMS had offered to pay.

Source