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XP Power revealed it has turned down three offers from US rival Advanced Energy Industries
Shares in XP Power rose nearly 50 per cent after it became the latest London-listed company to be targeted by foreign bidders.
In a statement to investors yesterday, the high voltage power supply firm revealed it has turned down three ‘highly conditional, opportunistic, indicative proposals’ from US rival Advanced Energy Industries.
The latest offer, submitted on May 7, valued XP Power at 1950p per share, or £468million – a figure the firm, which was founded in the UK in 1988 and is now based in Singapore, said ‘fundamentally undervalues the company and its prospects’.
The news saw its shares jump 47.8 per cent, or 556p, to 1720p.
XP Power joins a growing list of London-listed firms to be targeted, amid what has been described as a takeover ‘feeding frenzy’.
Australian mining giant BHP has until 5pm today to table a firm offer for Anglo American or walk away, having already seen two bids worth £31billion and £34billion rejected.
Video game firm Keywords Studios on Monday said it was ‘minded to recommend’ a £2billion offer from Swedish buyout giant EQT, having rejected four previous approaches.
And, earlier this month, Royal Mail owner International Distribution Services (IDS) backed a £3.5billion bid from Czech billionaire Daniel Kretinsky in a move that sent shockwaves through both the City and Westminster.
In a seven-month pursuit of XP Power, Advanced Energy Industries first tabled a bid of 1700p – or £339million – towards the end of October. The Colorado-based firm returned with a sweetened offer of 1850p – or £369million – weeks later.
Last night Advanced Energy Industries said its latest offer represents a ‘compelling and highly attractive opportunity’ for shareholders.
Steve Kelley, the firm’s president and chief executive, added: ‘By combining our technical capabilities, we believe we will be better able to meet the growing needs of our customers.’
Under takeover rules, Advanced Energy has until June 18 to make a formal offer or walk away.
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