July 15, 2020 / 12:59 PM / 20 days ago

Davidson Kempner spurns Thermo Fisher's Qiagen offer as 'wholly inadequate'

(Reuters) - Hedge fund Davidson Kempner said on Wednesday Thermo Fisher Scientific’s (TMO.N) offer to buy German genetic test maker Qiagen (QIA.DE) was “wholly inadequate” and that it would not be tendering its shares into the deal at the current price.

The fund, which holds 3.1% of Qiagen shares, said Qiagen should be sold for 50 euros ($57.21) a share, far above Thermo Fisher’s current offer of 39 euros.

Thermo Fisher in March proposed to buy Qiagen (QGEN.N) in an $11.5 billion deal as the U.S.-based company looked to bolster its health diagnostic business.

Qiagen, which has its main operations in Germany but is headquartered in the neighbouring Netherlands, is one of the world’s largest suppliers of products to prepare tissue and blood samples for advanced testing.

Davidson Kempner said that in light of Qiagen’s (QIA.DE) Q2 profits upgrade, Thermo Fisher’s (TMO.N) offer for the company was far from fair value and must be modified.

"Despite the meaningful Q2 profit upgrade and outlook issued on the 13th July, the Board of the Company continues to fail to recognise the true value of the Company," Davidson Kempner said in a letter to Qiagen's board tmsnrt.rs/3j8Tpkv.

A Qiagen spokesman declined to comment on Kempner’s statement and also declined to comment on whether Qiagen’s management and board still supported Thermo’s offer.

Reporting by Maiya Keidan in London, additional reporting by Patricia Weiss in Frankfurt; editing by Sujata Rao and Jane Merriman

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