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Activist Donerail wants Stratasys board to back 3D System’s offer

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The Donerail Group, a value-oriented, activist hedge fund firm that targets special situations and event driven investments, wants the board of Stratasys to engage with 3D Systems on its improved takeover offer for the company and drop its support for a rival deal with Desktop Metal.

The Donerail Group, a value-oriented, activist hedge fund firm that targets special situations and event driven investments, wants the board of Stratasys to engage with 3D Systems on its improved takeover offer for the company and drop its support for a rival deal with Desktop Metal.

The hedge fund, which holds a 2.3% ownership interest in 3D printing company Stratasys, says 3D Systems’ improved cash and stock offer for Stratasys, which equates to an implied value of $24.07 per share – an increase of about 15% from the previous offer made on May 30 – is a “superior proposal to the Desktop Metal transaction”.

Stratasys’s largest shareholder Nano Dimension has also upped its offer to acquire the ordinary shares it doesn’t already own in the company to $24 per share in cash, from a prior offer of $20.05.

According to the Donerail Group, both offers represent a nearly 70% premium to Stratasys’ closing share price of $14.26 on 25 May, the first trading day after the company announced a merger with Desktop Metal Inc in a $1.8 billion all-stock transaction.

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