UK investors score another win over buyout barons - Reuters

The Union Jack flag flies in London, Britain, September 11, 2017. REUTERS/Hannah McKay

LONDON, June 25 (Reuters Breakingviews) - British shareholders are 2-0 up against private equity suitors this week. On Friday London-listed UDG Healthcare (UDG.L) said buyout firm Clayton, Dubilier & Rice may sweeten its offer for the pharmaceutical services company to 10.80 pounds per share, valuing it at 2.7 billion pounds. UDG’s board recommended a bid worth 10.23 pounds per share in May, but shareholder Allianz Global Investors argued it was too cheap. On Thursday Blackstone (BX.N) bumped up its offer for British housebuilder St Modwen Properties (SMP.L) to 560 pence per share, from 542 pence read more .

The concessions are a victory for shareholders who have pushed up prices of private equity takeover targets in the hope of securing higher bids read more . The increases are hard for buyout firms to justify: Breakingviews calculated CD&R’s initial offer was expected to earn it a five-year internal rate of return of just 11%. But with two wins under their belts, public shareholders will be emboldened to demand more. (By Aimee Donnellan)

On Twitter http://twitter.com/breakingviews

Capital Calls - More concise insights on global finance:

Didi steers towards more muted Uber-like valuation read more

Xpeng has second shot at first-mover advantage read more

Biden’s roads deal is all in the engineering read more

Doximity shows there’s riches in niches read more

Deliveroo court win is mere amuse-bouche read more

Editing by Peter Thal Larsen and Oliver Taslic

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

Adblock test (Why?)

"score" - Google News
June 25, 2021 at 04:26PM
https://ift.tt/3h9O648

UK investors score another win over buyout barons - Reuters
"score" - Google News
https://ift.tt/2OdbIHo
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update

Bagikan Berita Ini