Coherent’s $7 billion bidding battle is over, and the laser company finally chooses a slightly lower bid from II-VI laser cutting maker.
The company’s choice seems logical, even though many companies offering huge sums of money and offering parts of their shares, the quality of the company that will result from the merger of the two companies is as important to the target company as it is to the acquiring company.
Coherent ended January’s bidding war between manufacturing company MKS Instruments, optical communications equipment giant Lumentum, and optical parts maker II-VI.
II-VI’s winning bid will exchange each Coherent share for $220 in cash and a 0.91 share of II-VI stock, bringing its bid to $282 per share based on II-VI’s closing price Thursday; However, the value of the offer may vary depending on the company’s share price, and the deal is now valued at $6.9 billion and is 20% higher than Lumentum’s initial offer.
In a separate press release, Lumentum noted that II-VI’s bid was 0.7% lower based on the closing prices of both companies’ shares on Wednesday, but Coherent management insisted II-VI’s bid was better and superior in both cases.