BERLIN (Reuters) - Germany’s Pfeiffer Vacuum (PV.DE) publicly rejected a takeover bid from rival Busch on Wednesday, saying it lacked a control premium and did not reflect the growth potential for vacuum pumps.
Busch had bid 96.20 euros per share, Pfeiffer said in a statement, adding that its management board was “reviewing other options” to ensure its shareholders could participate in the company’s long-term development.
DZ Bank analyst Harald Schnitzer, who has a “buy” recommendation on Pfeiffer, said the offer was too low, with shares in Pfeiffer at 106.80 euros by 0837 GMT, up 2 percent from Tuesday’s close.
Pfeiffer also reported fourth-quarter financial results on and said it expected strong business demand to continue at least through the first half of 2017.
Pfeiffer makes pumps used by manufacturers including semiconductor firms and makers of analytical devices such as electron microscopes. Busch describes itself as one of the world’s largest makers of vacuum pumps, blowers and compressors supplying all industry sectors.
Operating profit at Pfeiffer rose 12 percent to 68 million euros (57.71 million pounds) in 2016 and Chief Executive Manfred Bender said he was very satisfied with business in the first six weeks of 2017, helped by strong order intake at the end of last year.
($1 = 0.9469 euros)
Reporting by Andreas Cremer; Editing by Alexander Smith