Alere now Axis-Shield’s largest shareholder
Although by Thursday’s second closing date under the offer process Alere had only received acceptances from shareholders owning around 1 per cent of the company, it later bought part of investment group Skagen AS’s stake. Together with its existing stake, Alere now holds more than 12 per cent.
The deadline for acceptance of the offer has now been further extended to 10 October.
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Hide AdMassachusetts-based Alere has offered 460p-a-share, which values Axis-Shield at about £230m. The US firm took its bid hostile after Axis-Shield’s board said the offer price was “wholly inadequate”.
Although the take-up has so far been low, Alere believes the acquisition of shares from an institutional investor represents the “tide turning” in the bid battle. Sources close to Axis said nothing had changed in its stance and that it believed the firm was significantly undervalued by the offer. Skagen has retained a stake of 2.73 million shares, or 5.46 per cent of the company.
Shares in Axis had fallen last week after a Norwegian analyst downgraded them, arguing the “risk/reward profile” had become less attractive given ongoing turmoil in the financial markets and the lack of rival bids emerging. Shares in Axis closed down 0.5p at 460.25p last night.