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UPDATE 1-Loxam raises offer for UK's Lavendon to 425 mln stg
December 16, 2016 / 10:07 AM / a year ago

UPDATE 1-Loxam raises offer for UK's Lavendon to 425 mln stg

(Adds Lavendon response, updates shares)

Dec 16 (Reuters) - European industrial equipment supplier Loxam SAS raised its offer for UK’s Lavendon Group Plc on Friday to 425 million pounds ($528.83 million), in response to a counter bid by Belgian industrial equipment supplier TVH Group NV.

* Loxam offered 250 pence per Lavendon share, a day after TVH Group increased its offer to 230 pence and brought the offer value to 391 million pounds.

* Loxam’s latest offer represented a premium of 3.4 percent to Lavendon stock’s close on Thursday.

* Lavendon shares jumped as much as 7 percent to touch a high of 259 pence on Friday morning, before paring some gains to trade 5.8 percent at 258.26 pence, implying that shareholders expected a higher counter bid from TVH Group.

* TVH Group and Loxam have been locked in a bidding war for Lavendon, which has seen offers increasing from 205 pence per share and boosting its stock by about 75 percent since Nov. 22, when TVH first made public its interest in the British firm.

* Both companies are eyeing the British firm’s market share in equipment rental business in the UK and the Middle East.

* Lavendon rebuffed TVH’s first offer, citing concerns over execution risk and potential disruption to its business.

* Lavendon said its board intended to unanimously recommend that shareholders accept the raised Loxam offer. Lavendon had agreed to the offer terms from Loxam on both occasions, but urged its shareholders to take no action.

* TVH Group said on Friday it was considering its options after Loxam’s new offer. ($1 = 0.8037 pounds) (Reporting by Vidya L Nathan in Bengaluru; Editing by Amrutha Gayathri and Sherry Jacob-Phillips)

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