The Danish logistics company DSV said Tuesday that it had sweetened an earlier offer to acquire CEVA Logistics last week, but to no avail.
DSV earlier this month offered to acquire CEVA for 27.75 Swiss francs per share or a total of about $1.54 billion.
CEVA rejected that offer, saying on Oct. 11 its board of directors “concluded that the proposal significantly undervalues CEVA’s prospects as a standalone company, particularly as CEVA Logistics together with CMA CGM S.A. as a strategic partner has been exploring measures to enhance performance in order to unlock CEVA Logistics’ full potential.”
This spring CMA CGM acquired 24.99 percent of CEVA. After DSV’s initial offer, CMA CGM increased its holdings in CEVA to 33 percent. That’s within a hair’s width of a one-third ownership stake that would require CMA CGM to launch a tender offer for CEVA under Swiss Stock Exchange rules.
Undeterred, DSV made another offer to CEVA, increasing its offer to 30 Swiss francs per share. DSV said that its new proposal would provide CEVA shareholders with a premium of 60.4 percent to CEVA’s share price of 18.7 Swiss francs on Oct. 1 and a 45.8 percent premium to the 60-day volume weighted average price as of Oct. 1.
CEVA said Tuesday its board of directors, along with its advisers, were analyzing “diligently and seriously DSV’s proposal” and asked for more time to review the new proposal.
But DSV said, “Based on the unwillingness of the board of directors of CEVA to engage directly with DSV at the price per share offered, we have decided not to pursue an acquisition of CEVA.”