CD&R mulling improved 1,080p a share bid for UDG Healthcare
UDG Healthcare on Friday said US private equity firm Clayton Dubilier & Rice was considering lifting its bid after pressure from major shareholders, with the new offer valuing the Irish firm at £2.76bn.
The increase offer of 1,080p a share comes ahead of a key shareholder meeting on Friday. UDG and CD&R in May agreed a 1,023p-a-share deal, valuing UDG at £2.6bn, but major shareholders, including Allianz Global Investors and M&G Investments, said the offer undervalued the Irish outfit.
CD&R said it would consider an improved offer if another firm decided to swoop for UDG, whose board said it would accept the latest bid if made.
Allianz and M&G own almost 11.2% of the company between them, and publicly said that they would reject the original deal.
US hedge fund Elliott Investment Management also owns 3.2% and has in the past exerted pressure on bidders to raise offers for listed companies.
CD&R structured its bid as a so-called "scheme of arrangement", which would have required approval of 75% of voting shareholders at an extraordinary general meeting on Friday. However, it adjourned the meeting as it became clear it would struggle to win approval for the deal.