A group of shareholders of Tognum AG stock has rejected a 24 euros-per-share joint offer from the German engine manufacturer’s prospective buyers, Rolls-Royce Group Plc and Daimler AG, an insider of the situation disclosed.
The shareholders, who hold around 30 percent shares of the German engine manufacturer Tognum, said that the bid offered by Daimler and Rolls-Royce to buy Tognum was too low.
Among the investors who sent the manufacturer a written objection to the bid were Delta Lloyd Asset Management, ING Groep NV and First Eagle Investment Management.
Other shareholders expressed their oppositions orally, according to the person who requested anonymity because the communication is confidential. Based on Bloomberg’s compiled data, the combined share of First Eagle and ING will amount to at least 12%, second only to Daimler’s share of 28.4 percent.
Spokesperson for Daimler, Florian Martens said through a telephone interview that Daimler remains firm to the 3.2 billion-euro ($4.6 billion) bid.
On April 6, 2011, Rolls-Royce and Daimler began their public offer for Tognum, even if the stock has gone above the bid price since March 9, 2011, seeking a share of the engine manufacturer’s stock of at least 50 percent. Tognum had not agreed on a price, and the offer of the two companies is set to expire by May 18, 2011.
In addition, Daimler has pledged its stake. Rolls-Royce, a London-based aircraft engines maker, and Daimler, the manufacturer of Mercedes-Benz vehicles, will stay firm with their bid.
As of 10:13 a.m. today in Frankfurt, Germany, Tognum traded at 25.78 euros, rising as much as 0.1 percent, and was valued at 3.38 billion euros. The offer is higher by 30 percent compared to the closing price of Tognum in March 4, the last trading day before Daimler and Rolls-Royce conveyed their interest.