Xaar rejects a possible £130m plus bid by Danaher as “opportunistic”
Ink jet specialist Xaar plc (XAR.L) said late yesterday that it had rejected an unsolicited approach from Danaher Inc about a possible all-cash offer for the Cambridge-based company at between 200p – 220p a share.
An offer at those levels would value Xaar at between £130m and $140m.
Danaher later confirmed it had made an approach and said that it was considering its position. Xaar said it had made its announcement to the London Stock Market without Danaher's consent.
The stock market quickly marked Xaar shares up 41%, or 66.5p, to 228.00p, valuing it at around £138m
The Xaar Board said that whilst such an offer would represent a premium of between 38.5p - 58.5p to Monday’s closing price of 161.5p, “more relevantly” it would be a discount of between 118p – 138p to the 12 month high of 338p.
It said it viewed “the timing of this approach as opportunistic”.
It said it continued to be confident in Xaar's longer-term prospects in a rapidly growing market, as well as in the strategic value of its digital ink-jet technology.
It advised shareholders to take no further action at the moment.
Washington, DC-headquartered Danaher Inc makes hand tools and medical equipment. Last year its sales reached $7.9 billion and it employed 40,000 people.
15th November 2006
