OE manufacturer Osram has advised shareholders to accept a deal offered by Austrian semiconductor firm AMS.
The offer of €38.50 per share is greater than an earlier offer made by P.E firms Bain Capital and Carlisle, plus Osram's board believes that AMS' experience with microchip development will benefit the company in the future.
READ: NEW €4bn+ BID FOR OSRAM
However, not everyone is convinced. One of Germany's largest trade unions had already rejected the bid and in a joint reasoned statement, Osram's board has raised concerns over where the new company will be based and be structured.
READ: OSRAM LATEST: WORKERS UNION REJECTS AMS BID
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Osram recommends shareholders accept takeover bid[/caption]
Taking the view that 'The financial attractiveness of the offer was to be weighted higher than points of criticism'. Osram has recommended that the offer be accepted. "Overall, the Management Board and the majority of the Supervisory Board regard the strategy pursued by ams as promising in many respects, particularly with regard to the further development of the Opto Semiconductors business unit. By merging with AMS, this business unit could benefit from the development of innovative sensor and photonics solutions, and the use of established customer access, among other things" the company said in a statement.
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