Premier Farnell fizzles as Dätwyler refuses to top Avnet offer

Premier Farnell shares sank on news that Swiss suitor Dätwyler Holding was refusing to improve its offer for the electronic components distributor.

At the end of last month Premier abandoned its recommendation on an offer by Datwyler's Technical Components UK arm in favour of a rival and richer bid stumped up by Avnet, Inc.

Investors were hoping the Swiss conglomerate would come back with a higher offer.

Avnet's 185p-a-share cash offer valued Premier Farnell's issued share capital at about £691m and implied a value of £868m.

On Thursday, Datwyler said its previous offer of 165p in cash was final and will have to bear one-off transaction costs of between CHF 4-8m plus CHF 35-40m related to currency hedging and exchange rate losses.