Best known for supplying sensors for Apple‘s latest iPhone, AMS had fought a fierce battle against private equity groups in pursuit of the larger Osram, a leader in automotive lighting.
Shares specializing in AMS sensors and lighting group Osram fell on Monday amid concerns that AMS could revise its $ 4.9 billion takeover bid that went down on Friday.
In the end, it managed to collect 51.6% of Osram’s shares, significantly less than the required level of 62.5%.
Shares of AMS changed early gains and declined 4.3% to 42.83 Swiss francs at 0855 GMT.
“While we rate the bid failure as positive for AMS due to our cost and purchase concerns, it seems unlikely that the issue will end up here with another bid at some point,” said the analyst. Liberum, Janardan Menon in a note to clients.
Early facilitation that AMS would not be burdened with billions of new debts and a complex integration process was quickly replaced by concerns that the company might adhere to its takeover plan, traders said.
The AMS was prepared to take on an additional € 4.4bn of debt and planned to issue new capital worth € 1.6bn to refinance part of the deal.
AMS is now Osram’s largest shareholder with a 19.99% direct stake. She said Friday was still committed to pursuing the purchase.
Shares in Osram, which became a market target following its strategy to turn itself into a high-tech company focused on LEDs and laser chips, which did not deliver the expected success, fell as much. 4.5% to 39.00 euros, below the 41 euros that AMS had offered to pay.
Traders had expected a larger decline and interpreted the smaller slide of Osram stocks as a sign that hopes for a deal remain.
“It may be smart not to sell aggressively,” one trader said. “There are still many unknowns including ongoing talks with AMS and perhaps an improved offer from Bain & Advent.”
Osram said Friday he was open to discussing “meaningful and mutually beneficial co-operation” with AMS.