Lumentum Makes New $6.9 Billion Bid in Coherent Takeover Battle >LITE COHR
6:08 am ET March 17, 2021 (Dow Jones) Print
By Colin Kellaher
Lumentum Holdings Inc. on Wednesday said it made a revised $6.9 billion offer for Coherent Inc. that values its rival laser maker at $275 a share.
Lumentum said its new offer, which is backed by private-equity firm Silver Lake, includes $220 in cash and 0.61 shares, worth $55 based on Tuesday's closing price of $90.17, for each Coherent share.
The new offer represents a roughly 10.6% premium to Coherent's Tuesday closing price of $248.71 and tops the current bid from II-VI Inc., which is looking to upend Lumentum's deal to buy Coherent.
Coherent on Friday said its board determined that II-VI's latest offer, which includes $195 in cash and one II-VI share for each Coherent share, is superior to its current agreement with Lumentum, which had until Wednesday to submit a revised offer.
II-VI's current offer is worth $266.80 a share to Coherent, based on Tuesday's closing price of $71.80.
Coherent said its board of directors will review Lumentum's new proposal, which includes a $1 billion equity investment in the combined company from Silver Lake, in comparison to II-VI's latest bid, which is backed by private-equity firm Bain Capital.