News: Bidding war for laser maker Coherent intensifies with II-VI’s $7 billion revised offer.
(Reuters) – The takeover battle for Coherent Inc intensified Thursday after optical components maker II-VI Inc increased its bid for the laser maker to $ 7 billion, outperforming a competing bid from Apple supplier Lumentum Holdings .
Coherent supplies laser-based devices for the production of Organic Light Emitting Diode (OLED) displays, which are becoming a popular choice for smartphones and high-end televisions due to their energy efficiency, better contrast and higher refresh rates.
Coherent announced Thursday that under the revised offering of II-VI, shareholders would receive $ 220 in cash and $ 0.91 of one II-VI share for every share they own. Lumentum increased its offering to $ 6.9 billion on Wednesday.
Coherent was brought into play after Lumentum, a supplier of 3D sensors that were used in iPhone’s Face ID offered the company $ 5.7 billion in January and sparked competing offers from MKS Instruments Inc and II-VI Inc last month.
Since then, Lumentum and II-VI have been embroiled in a heated bidding war as the acquisition would help expand their presence in an industry that is expected to benefit from 5G rollouts and laser-based technology in everything from phones to cars.
Coherent said it was for the superior bid from II-VI.
II-VI, whose name refers to the elements in Groups II and VI of the periodic table used to make optical crystalline infrared compounds, bought Apple supplier Finisar Corp in 2018 for approximately $ 3.2 billion.
Coherent’s shares, which are up roughly 69% since Lumentum’s initial offering, rose 3% on Thursday. The shares of II-VI and Lumentum were each down about 2%.
Reporting by Eva Mathews and Derek Francis in Bengaluru; Letter from Subrat Patnaik; Adaptation by Arun Koyyur and Anil D’Silva
Original Source © Reuters