Lumentum and II-VI up bids to acquire Coherent

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Laser manufacturer Coherent has recieved two new acquisition proposals from Lumentum and II-VI, valued at $6.9bn and $7bn respectively.

The firm has determined that the II-VI offer is superior, and has therefore notified Lumentum that it intends to terminate their current merger agreement unless Coherent receives a revised acquisition proposal from Lumentum by 11:59pm Pacific Time today.

Under the current merger agreement, such a termination would require Coherent to pay a $217.6m fee to Lumentum. 

The Coherent bidding war so far:

19 January: Coherent accepts a $5.7bn acquisition offer from Lumentum

Coherent stockholders would receive $100.00 per share in cash and 1.1851 shares of Lumentum common stock for each Coherent share they own.

8 February: Coherent receives a $6bn acquisition offer from MKS Instruments

Each share of Coherent common stock would be exchanged for $115.00 in cash and 0.7473 of a share of MKS common stock.

12 February: Coherent receives a $6.4bn acquisition offer from II-VI

Each share of Coherent common stock would be exchanged for $130.00 in cash and 1.3055 shares of II-VI common stock. ​

8 March: Coherent determines that a revised $6.5bn offer from II-VI is superior to two revised offers from Lumentum and a revised offer from MKS Instruments

Each share of Coherent common stock would be exchanged for $170.00 in cash and 1.0981 shares of II-VI common stock. 

Under one of Lumentum’s revised proposals, each share of Coherent common stock would be exchanged for $175.00 in cash and 1.0109 shares of Lumentum common stock, coupled with a significantly high termination fee as a condition to accepting competing acquisition proposals. Under the other revised Lumentum proposal, each share of Coherent common stock would be exchanged for $170.00 in cash and 1.0109 shares of Lumentum common stock, coupled with a meaningfully high termination fee as a condition to accepting competing acquisition proposals.

Under the terms of MKS’ revised proposal, each share of Coherent common stock would be exchanged for $135.00 in cash and 0.7516 of a share of MKS common stock.

9 March: Coherent signs a revised $6.6bn merger agreement with Lumentum

Each share of Coherent common stock would be exchanged for $175.00 in cash and 1.0109 shares of Lumentum common stock. A $217.6m termination fee would be payable to Lumentum should Coherent accept a competing offer.

12 March: Coherent determines that a newly revised $6.8 billion offer from II-VI is superior to Lumentum’s offer

Each share of Coherent common stock would be exchanged for $195 in cash and 1.0 shares of II-VI common stock. 

17 MarchCoherent receives a revised $6.9bn acquisition offer from Lumentum

Each share of Coherent common stock would be exchanged for $220 in cash and 0.61 of a share of Lumentum common stock.

18 March: Coherent receives a revised $7bn acquisition offer from Lumentum

Each share of Coherent common stock would be exchanged for $220 in cash and 0.91 of a share of II-VI common stock.

Coherent has notifed Lumentum that it intends to terminate their merger agreement unless Coherent receives a revised acquisition proposal from Lumentum by 11:59pm Pacific Time today. Coherent would be required to pay the $217.6m termination fee to Lumentum if it accepts the II-VI agreement.

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