By Dominic Chopping
STOCKHOLM--Alfa Laval AB said Monday that the preliminary result of its bid for Neles Oyj shows it has received acceptances representing 33% of the shares in Neles, below the 50% it had targeted to complete the deal.
Alfa Laval launched a 1.73 billion-euro ($2.01 billion) takeover bid for Neles in July and originally set the acceptance period to expire on Oct. 22 with an acceptance level of more than two thirds. However, it later extended the offer period to expire on Oct. 30, with an acceptance level of more than 50%.
The company said it will announce the final result of the offer on or about Nov. 4, but if it confirms the number of shares acquired remains at the same level as indicated by the preliminary result, it will not complete the takeover.
Alfa Laval and Valmet Corp. have been vying for control of Neles over the past couple of months. Valmet has gradually increased its ownership in Neles to 29.5% and recently moved to try to scupper Alfa Laval's deal by sending Neles an unsolicited letter proposing a merger, but didn't disclose terms.
The Neles board has recommended shareholders accept Alfa Laval's bid, saying recently that it failed to get details of Valmet's counter proposal.
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(END) Dow Jones Newswires