News: Coherent takeover battle heats up after II-VI raises offer to $7 billion.
(Reuters) – Coherent Inc announced Thursday that optical components maker II-VI Inc has increased its tender offer to $ 7 billion, putting the offer made by Lumentum Holdings in a three-way battle to acquire the Laser company was surpassed.
Under the revised offering, coherent shareholders would receive $ 220 in cash and $ 0.91 of one II-VI share for each share they own.
On Wednesday, fiber optic company Lumentum increased its offer for Coherent to $ 6.9 billion.
Coherent, however, endorses the offer from II-VI and calls it superior to the offer from Lumentum.
Coherent has proven to be an attractive takeover opportunity as the microelectronics unit, which is also the largest, is expected to benefit from demand for flat panel displays with organic light emitting diodes from cell phone manufacturers such as Apple Inc.
MKS Instruments got into the fight last month, offering $ 6 billion to buy Coherent.
Coherent’s shares, which have risen roughly 69% since Lumentum’s initial takeover bid in January, rose 5.5% on the Thursday before the bell.
Reporting by Derek Francis and Eva Mathews in Bengaluru; Adaptation by Arun Koyyur and Anil D’Silva
Original Source © Reuters