Magazine article American Banker

Why Ingenico Said No to $1.9 Billion Offer

Magazine article American Banker

Why Ingenico Said No to $1.9 Billion Offer

Article excerpt

Byline: Kevin Woodward

Possible explanations ofIngenico SA's Dec. 19 rejection of an unsolicited, nonbinding offer are emerging.

The French point of sale terminal maker, which publicly acknowledged the $1.9 billion bid last week, said in a news release Sunday that the company making the offer "has not been in a position to submit a binding offer that could be accepted by the board."

Danaher Corp. of Washington reportedly was the unsuccessful bidder, though Danaher representatives did not respond to a request to confirm that report.

Market reaction to the rejection sent Ingenico's shares down 5.6% Monday, to $34.19 from Thursday's closing price of $36.21. Trading of Ingenico stock was halted Friday, Ingenico said.

The French government apparently also views Ingenico as a "strategic" company, according to a Reuters news report.

The report further said that Safran, a French defense firm that is partly owned by the French government and is Ingenico's largest shareholder, wanted a minority stake in the enterprise if it were sold.

That position may make it more difficult for a foreign company to buy Ingenico, analysts said.

"It doesn't seem like they outright rejected the offer," said Gil Luria, an analyst at Wedbush Securities. An acquisition of Ingenico "is not necessarily completely off the table."

Companies such as Danaher will continue to be drawn to companies like Ingenico because of the revenue potential they offer, Luria said. …

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