By Dominic Chopping
STOCKHOLM--Alfa Laval AB said Wednesday that it has withdrawn its offer for Neles Oyj after failing to receive enough acceptances for the deal.
The company said the final results of its tender offer show it received acceptances representing 32.82% of the shares and votes in Neles, missing the 50% threshold it needed to complete the deal.
Alfa Laval and Valmet Corp. have been vying for control of Neles over the past couple of months, with Alfa Laval launching a 1.73 billion euros ($2.02 billion) takeover bid in July. 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.
"While the industrial logic and growth synergies between Neles and Alfa Laval represented a significant opportunity for both companies, we do not believe that Neles would be well served by having two large shareholders with conflicting strategic agendas for the long-term," said Alfa Laval Chief Executive Tom Erixon.
"For that reason, Alfa Laval has decided to withdraw the public tender offer."
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(END) Dow Jones Newswires