French firm raises offer by 13% just two days after previous bid
Companies: Lavendon Group
The Lavendon takeover saga continued on Friday as French rental company Loxam raised its offer for Lavendon Group to 250p/share (£425m) just two days after having an offer of 220p accepted by the board.
The move follows TVH's counter bid on 15 December of 230p/share and effectively values the group at an 80% premium to its 21 November close price of 139p.
The offer means that Loxam has now passed Panmure Gordon's 236p valuation of the firm, and it appears the move is favoured by Lavendon's Board which has "unanimously" advised investors to accept Loxam's offer:
"The Board of Lavendon unanimously intend to recommend that Lavendon Shareholders accept the increased Loxam Offer and therefore continue to advise that shareholders take no action with regard to the offer from TVH."
TVH acknowledged Loxam's new offer and issued an RNS to ask investors not to rush to accept the deal as it decided on whether to counter offer:
"TVH is considering its options and urges Lavendon Shareholders to take no action in response to the announcement by Loxam."
The news will be welcomed by investors who held out for the bid, with the firm's share price now 85% higher than it's 21 November close. Judging by the current share price, some investors appear to be holding out for a counter offer. At the time of writing, LVD's share price is holding steady at c.256-7p, c.2% above the offer price.
