Facing criticism from certain shareholders who deemed the initial bid of 91 euros per share insufficient, the offer was raised to 94 euros (equivalent to $102.53) per share for Vitesco.
Vitesco Technologies, a prominent global provider of advanced drive technologies and electrification solutions, has labelled Schaeffler’s recent offer as ‘insufficient.’ This was reported following Schaeffler’s decision to raise its bid for shares in Vitesco Technologies on Monday, which Vitesco’s management still considered “inadequate.”
The Schaeffler family of Germany, known for their billionaire status, holds all voting rights and 75% of shares in Schaeffler, a supplier specializing in electric vehicle components. They also possess nearly 50% of Vitesco, indicating a high probability of the merger being finalized.
However, responding to concerns from some shareholders who felt the initial bid of 91 euros per share was low, Schaeffler upped its offer to 94 euros (about $102.53) per share in Vitesco. This move was seen as a reflection of their confidence in the synergistic benefits of merging the two companies.
Despite the increased offer, Vitesco’s management and supervisory boards still view the new price as “inadequate from a financial standpoint.” Yet, they acknowledged that it might present a viable exit strategy for investors preferring less risk or seeking short-term opportunities in the current market conditions.
The proposed merger aims to establish a more formidable competitor in the electric vehicle sector and to streamline the Schaeffler family’s business interests, which include holdings in both Vitesco and Continental.
The deadline for this offer is set for December 15, with the anticipated completion of any resultant transaction in the fourth quarter of 2024.
