EU and US could reach trade deal this weekend - Reuters
On Tuesday, Deutsche Bank adjusted the price target for TI Fluid Systems Plc. (TIFS:LN) shares, a leading automotive fluid systems manufacturer, from £1.70 to £2.00, while maintaining a Hold rating on the stock. The revision follows a series of acquisition offers from ABC Technologies, with the latest bid reaching the £2.00 mark, which is now being considered by the TI Fluid Systems Board.
The bidding war for TI Fluid Systems has seen multiple rejections, with initial offers of 165p per share being surpassed by consecutive higher bids. The third and fourth offers, at 188p and 195p respectively, were turned down. However, the recent fifth conditional offer of 200p per share, disclosed on Saturday, has been met with a more positive response from the company's Board, which is inclined to endorse the proposal should it solidify.
TI Fluid Systems' Board has granted ABC Technologies an extension until November 8, 2024, to complete due diligence, secure financing, and negotiate definitive transaction documentation. This extension indicates that the Board is open to the possibility of an acquisition at the proposed price, which represents a significant premium over recent trading prices.
The proposed 200p offer by ABC Technologies is approximately a 52% premium over the 90-day Volume Weighted Average Price (VWAP) leading up to September 13, and about a 53% premium to the closing price on August 21, the last business day before ABC's initial proposal. This substantial premium highlights the value that ABC Technologies sees in acquiring TI Fluid Systems and may signal the end of a protracted negotiation period.
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