The French bidder for Britain’s leading cherry-picker company has raised its recommended offer, intensifying the bidding war for Lavendon.
Loxam’s £425 million, 250p-a-share bid trumps yesterday’s raised offer from its Belgian rival Thermote & Vanhalst. TVH, which said it would pay 230p a share and also acquired a further 5.4 per cent of Lavendon to raise its stake in the company to 14½ per cent, said it was considering its options and urged Lavendon investors to take no action.
Shares in the Leicestershire-based company rose by 16¼p to 257¾p, in expectation of a higher offer. Some analysts believe that the shares should be valued nearer 275p.
TVH made a 205p-a-share hostile cash bid for Lavendon last month. It was not recommended by Lavendon’s directors after they sounded out shareholders, including the investment fund M&G, which holds nearly 20 per cent. Filings revealed that Lavendon’s board had been minded to back TVH until M&G refused to support the bid, saying that it was too low.
Loxam’s latest offer represents an 80 per cent premium to the 139p closing price of Lavendon shares on November 21, the day before its initial offer. As a result of the increased recommended offer, Lavendon has agreed to raise the break fee for the deal to £4.2 million.
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The two rivals are understood to have been stalking the UK business for months. Loxam, which is Europe’s largest supplier of aerial platforms and powered access units, has said that a merger with Lavendon would create a European powerhouse behind the two big world players, United Rentals of the US and Ashtead.
