First notable possible bidding wars. IMO this show some pent up demand for takeovers that will be forthcoming..
- Schiff Nutrition receives 2nd takeover offerSchiff Nutrition gets 2nd takeover offer from Reckitt Benckiser; follows Bayer bid in October
- Innospec ups TPC Group buyout offer
A British consumer goods company has made a competing bid for Schiff Nutrition International Inc. a couple weeks after Bayer AG said it will buy the U.S. vitamin and nutritional supplement maker.
Shares of Salt Lake City, Utah-based Schiff shot up more than 28 percent, or $9.58, to $43.50 in Friday morning trading after Reckitt Benckiser Group PLC revealed its offer.
Slough, England-based Reckitt Benckiser said it is starting a tender offer to buy Schiff for $1.4 billion, or $42 per share, in cash. That per-share price represents a premium of more than 23 percent over an offer Bayer made Oct. 30.
The German drugmaker said then that it would buy Schiff for $1.2 billion, or $34 per share, in another cash deal. A Bayer spokesman declined to comment Friday on the competing offer.
Schiff shares closed at $23.19 on Oct. 26, the last trading day before Bayer made its offer.
Schiff products include Tiger's Milk nutrition bars, Omega 3 supplement MegaRed, and Airborne immune system health supplements. Its portfolio includes brands in three of the largest health supplement segments — joint care, cardiovascular health and immune support.
For its fiscal 2012, which ended May 31, Schiff posted revenue of $258.9 million, and net income of $13.7 million, or 47 cents per share. That was up from sales of $213.6 million, and earnings of $12.6 million, or 43 cents per share, for its prior fiscal year.
Reckitt Benckiser said it was confident Schiff's board of directors will chose its "superior proposal," and it believes it can get a deal done before the end of the year.
finance.yahoo.com
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Innospec Inc. (Nasdaq: IOSP) increased its buyout offer for TPC Group Inc. (Nasdaq: TPCG) to $47.50 per share, which has resulted in new highs for TPC’s stock.
Colorado-based Innospec, a specialty chemicals company, is competing with private equity firms First Reserve Corp. and SK Capital Partners to have the best buyout offer for Houston-based TPC, another specialty chemicals company and the world’s largest producer of butadiene, which is used in synthetic rubber.
Last week, after TPC said it agreed to a revised $45-per-share offer from First Reserve and SK Capital, multiple large TPC shareholders spoke out against the agreement, saying it was still priced too low. In early October, Innospec proposed to buy TPC for $44 to $46 per share.
Now, with Innospec’s new offer of $47.50 per share, which is expected to be backed by financing from Blackstone Capital Partners, TPC has authorized Innospec to resume its due diligence review of the company.
TPC said in a Thursday statement that its board of directors still recommends that its stockholders vote in favor of approving its merger agreement with First Reserve and SK Capital for $45 per share. However, TPC also said that Innospec’s new offer is expected to lead to a better formal proposal when it completes its due diligence.
“We were disappointed to have been denied sufficient access to complete our due diligence, and we fully expect this revised offer to allow this to happen," Patrick Williams, Innospec’s CEO and president, said in a statement. "Our diligence so far has confirmed our initial findings that TPC is a good strategic fit with Innospec."
On news of the new offer, TPC’s stock jumped to $47.85 per share Thursday morning, an increase of more than 4 percent and a new 52-week high. Some TPC analysts have estimated that the bidding war for TPC will continue to increase, and the company will eventually sell for $50 per share.
bizjournals.com
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