Battle for Vectura could go to auction as Philip Morris lifts bid
Vecura has withdrawn its intention to recommend the sweetened offer made by Carlyle at the end of last week after an increased offer from Philip Morris, as the UK Takeover Panel said the process would be put to auction if both suitors don’t make final bids by Tuesday.
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Philip Morris International Inc.
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Vectura Group
164.80p
16:53 18/10/21
On Sunday, US tobacco giant Philip Morris upped its offer for Vectura to 165p a share in cash - or £1.02bn - from 150p, after private equity firm Carlyle said on Friday that it had increased its bid for Vectura to 155p a share, or £958m.
The London-listed inhaler maker said on Friday that it had withdrawn its recommendation for the PMI bid and would accept the offer from Carlyle. It said the new offer was "highly attractive" for its shareholders and "secures the delivery of future value in cash, with no regulatory contingencies to completion".
However, Vectura said on Monday that while it deemed it appropriate to withdraw its intention to recommend the Carlyle offer, it was not going to recommend the offer from PMI in light of the what the Takeover Panel has announced.
"The board will make a further announcement after the end of the auction, as set out in the auction rules, based on its fiduciary duties, consistent with its approach to date," it said.
The auction process would give PMI and Carlyle up to five days of public bidding.
At 1050 BST, Vectura shares were up 4.8% at 171.82p.