Arcadis has rebuffed a second takeover approach from Canadian engineering giant WSP today, insisting an improved €51.5-a-share proposal still falls well short of the consultant’s true value.
The Dutch design and engineering group confirmed WSP returned with a revised indicative offer after an initial €48.5-a-share approach, first revealed yesterday, was unanimously rejected by Arcadis’ executive and supervisory boards.
The latest proposal, comprising cash and WSP shares, values Arcadis more highly at around €4.4bn (£3.8bn) but remains unsolicited, conditional and non-binding.
Arcadis said the first bid “fundamentally undervalued” the business and failed to address concerns over strategic fit, cultural compatibility, deal certainty and the interests of wider stakeholders.
In a strongly worded response, the Arcadis board signalled it believed shareholders would be better served by backing the company’s standalone growth plans.
But it added the revised offer would be thoroughly reviewed with financial and legal advisers on behalf of shareholders before a firm decision was taken.
Arcadis said recent trading had reinforced confidence in its strategy, with Q1 results showing improving operational momentum and progress on growth, margin improvement and cash generation.
It added that the value expected from executing its medium-term strategy would be “significantly in excess” of that reflected in WSP’s latest proposal.
The company is expected to provide a further update alongside its half-year results on 30 July, followed by a Capital Markets Day on 29 September where it plans to unveil refreshed medium-term targets.
Arcadis has rebuffed a second takeover approach from Canadian engineering giant WSP today, insisting an improved €51.5-a-share proposal still falls well short of the consultant’s true value.
The Dutch design and engineering group confirmed WSP returned with a revised indicative offer after an initial €48.5-a-share approach, first revealed yesterday, was unanimously rejected by Arcadis’ executive and supervisory boards.
The latest proposal, comprising cash and WSP shares, values Arcadis more highly at around €4.4bn (£3.8bn) but remains unsolicited, conditional and non-binding.
Arcadis said the first bid “fundamentally undervalued” the business and failed to address concerns over strategic fit, cultural compatibility, deal certainty and the interests of wider stakeholders.
In a strongly worded response, the Arcadis board signalled it believed shareholders would be better served by backing the company’s standalone growth plans.
But it added the revised offer would be thoroughly reviewed with financial and legal advisers on behalf of shareholders before a firm decision was taken.
Arcadis said recent trading had reinforced confidence in its strategy, with Q1 results showing improving operational momentum and progress on growth, margin improvement and cash generation.
It added that the value expected from executing its medium-term strategy would be “significantly in excess” of that reflected in WSP’s latest proposal.
The company is expected to provide a further update alongside its half-year results on 30 July, followed by a Capital Markets Day on 29 September where it plans to unveil refreshed medium-term targets.
