A group of investors including Davidson Kempner Capital Management, is hoping to persuade Schneider Electric SE to increase its £31 per share takeover offer for UK industrial software company Aveva Group Plc, according to a report by Bloomberg.
The report cites unnamed sources as revealing that the merger arbitrage firm has built a holding of 3.5% in Avela and along with other minority investors is seeking an improved offer from Schneider Electric of up to £35 per share. Davidon Kempner is reportedly continuing to acquire Avela stock.
Schneider, which already holds about 59.1 per cent of Avela, first made an offer to buy out minority shareholders last month in a deal valuing the business at £9.5 billion. Funds holding near 7% of Avela, including M&G and Mawer Investment Management have said the price is too low and are opposed to the current terms. Investors are expected to vote on the deal next month with the support of 75% needed for it to progress.
The current offer, which is a 41% premium to Aveva’s share price on 23 Aug, the day before Bloomberg News first reported on a possible bid has been delayed as “fair ad reasonable’ by Avela’s independent committee.
