By Dominic Chopping
Finland's Valmet Corp. has said it is still hoping to merge with Neles Oyj despite having its approach knocked back.
At the end of September, Valmet approached Neles over a potential merger and said Monday that it has clarified its view on the strategic rationale, potential structure and synergy potential and emphasized its willingness to engage in talks to clarify a more specific proposal, including a share exchange ratio.
"Unfortunately, Valmet was not invited to discuss these topics in more detail," it said in a statement.
Valmet and Sweden's Alfa Laval AB have been vying for control of Neles over the last couple of months, with Alfa Laval tabling a 1.73-billion-euro ($2.05 billion) cash offer for Neles in July that was recommended by the Neles board, while Valmet has gradually increased its ownership in Neles to 29.5%.
In a separate statement Monday, Neles said it continues to recommend Alfa Laval's bid, saying it has failed to get details of the counter proposal from Valmet.
"The negative response from the board of directors of Neles effectively deprives its shareholders of the possibility to evaluate an alternative to Alfa Laval's offer," Valmet said.
"Valmet sustains its goal to merge Valmet and Neles."
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(END) Dow Jones Newswires