Artem Kutovoy’s Post

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MSc in Finance (Investment Banking Track) at Università Bocconi

Vitesco Technologies and Schaeffler Merger On 24th April 2024 at the General Meeting the companies will most likely grant the approval of the Merger agreement as the culmination of the Tender Offer from Schaeffler that Vitesco accepted, which valued the shares of the latter at 94 EUR per share. The 3 reasons why I find this deal interesting and unique are: 1. The Bidder entered into an Acting-in-Concert agreement with 2 entities that in total hold 49.94% of the share capital and voting rights of Vitesco. 2. J.P. Morgan, Lazard and Perella Weinberg acted as Vitesco’s financial advisors for this deal and all 3 expressed in their Opinion Letters that the updated Offer Price is inadequate from the financial point of view 3. The Bidder expressed the ambition to finish the integration process by the end of the year. It will be interesting how Board Interlocks, IMO Committee consisting of the CEO, CFO and CHRO of both companies - both factors mentioned by Jeff Weirens and Mark Sirower in “The Synergy Solution” and in the publication in "Advances in Mergers and Acquisitions" journal by Olimpia Meglio, David R. King, Ph.D. and Elio Shijaku, Ph.D. on the role of social ties in addressing the information asymmetries in acquisitions will affect the integration process. Read my full article on the Merger on my Medium page: https://lnkd.in/dAXQ26TR

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