No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Intertek surged on Tuesday after Swedish private equity firm EQT sweetened its takeover proposal for the inspection, product testing and certification group.
EQT's latest offer of 5,800p was up from previous offers of 5,400p and 5,150p per share.
This represents a premium of 54% to the closing Intertek share price on 9 April, which was the day before EQT submitted its initial proposal.
"EQT believes this further increased proposal delivers certain and accelerated cash value for shareholders, superior to the range of outcomes associated with Intertek's standalone prospects," it said. "EQT is price disciplined and has submitted this significantly higher further increased proposal with a view to securing prompt and constructive engagement from the board of Intertek and progressing swiftly towards a transaction in the interests of all stakeholders."
It added that there can be no certainty that an offer will be made.
Intertek said in a statement that it was reviewing the revised proposal with its advisers and a further announcement will be made in due course.
Under UK takeover rules, EQT has until 1700 BST on 14 May to either announce a firm intention to make an offer or walk away.
At 0955 BST, the shares were up 7.5% at 5,164p.
Dan Coatsworth, head of markets at AJ Bell, said: "The 58 per share cash offer may look attractive to investors. However, this is below the all-time highs for the shares and if a deal gets over the line, it will further diminish the breadth and depth of UK plc."
See latest RNS on Investegate
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.