Bidding war for Germany's Osram heats up with AMS's new 4.5 billion offer

[September 27, 2019]  VIENNA (Reuters) - Austrian sensor maker AMS <AMS.S> has increased its takeover offer for German lighting group Osram <OSRn.DE> to 41.00 euros per share or 4.5 billion euros ($4.9 billion), heating up a bidding war as a rival consortium is poised to enter the fray.

Osram, a larger company than AMS and a leader in automotive lighting, said on Wednesday Bain and its new partner Advent were prepared to make a bid and would offer a price "meaningfully" above AMS's, which at the time was 38.50 euros a share.

"AMS is pleased to announce that it has increased the price of its all-cash takeover offer for 100% of the share capital of Osram to 41.00 euros per Osram share," AMS said in a statement on Friday. "All other terms and conditions of the best and final offer remain unchanged."

Rather than extend the offer period AMS, best known for supplying Apple <AAPL.O> with sensors for iPhones, said it would still expire on Oct. 1, leaving its rivals just a few days to give shareholders a clear choice.

To reduce its dependence on smartphone producers, AMS wants to expand in the auto industry and supply manufacturers with sensors and lighting systems for self-driving cars.

 A lit bulb by German lighting manufacturer Osram is seen in front of packages with different Osram bulbs in this picture illustration taken September 1, 2019. REUTERS/Andreas Gebert/Illustration/File Photo

It has said it would cut Osram jobs outside Germany, sell its digital business and phase out its consumer general lighting LED business.

Shares in Osram were up 3.1% at 39.90 euros, valuing the company at around 3.86 billion euros ($4.2 billion), while those in Zurich-listed AMS were down 7.5% after they resumed trading at 1010 GMT. Its market capitalization is 3.54 billion Swiss francs ($3.57 billion).

"We have provided comprehensive commitments aimed at safeguarding employees and production facilities of Osram in Germany and have carefully planned the successful integration of both companies," AMS said.

"We offer a superior proposal to all stakeholders, including the Osram employees, given our strategic vision, higher growth, better cash flows and lower cost of capital," it added.

(Matarise and Louise Heavens)

[© 2019 Thomson Reuters. All rights reserved.]

Copyright 2019 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.