Genomma Refuses To Raise Price, Drops Prestige Bid
This article was originally published in The Tan Sheet
Genomma drops its unsolicited offer because it was unwilling to meet Prestige’s demand for a higher price. The Mexican firm said it secured funding and met other milestones Prestige insisted on.
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Genomma intends to seek a large board presence after Prestige Brands on March 12 rejected its unsolicited bid of $16.60 a share, an offer Prestige said was “well below the intrinsic value of the firm,” and plagued with other problems, including unsecured finances.
Prestige Brands encourages shareholders not to act on Genomma Lab’s “highly conditional” unsolicited $834 million takeover bid. A merger would give Genomma access to the U.S. market and the Mexico City-based bidder said it would boost Prestige’s marketing and international presence. Analysts give the deal a 50/50 shot of happening.
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