By Dominic Chopping
Finland's Neles Oyj said Monday that it continues to recommend Alfa Laval AB's 1.73 billion-euro ($2 billion) takeover bid for the company, after failing to get details of a counter proposal from Valmet Corp.
Alfa Laval and Valmet have been vying for control of Neles over the last couple of months with the former tabling a bid in July. Valmet has gradually increased its ownership in Neles to 29.5% and recently moved to try and scupper its rival's deal by sending Neles an unsolicited letter proposing a merger between the two companies, but didn't disclose proposed terms.
"We've worked... to build a dialogue and to clarify Valmet's approach," Neles Chairman Jukka Moisio said, but added that "there is no concrete proposal from Valmet's board of directors available to Neles which we could fairly assess from the perspective of Neles shareholders."
Neles said it therefore continues to recommend that the company's shareholders accept the public cash tender offer by Alfa Laval, which is expected to expire on Oct. 22.
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(END) Dow Jones Newswires