Daetwyler Says It Won’t Raise Bid for Premier Farnell
Swiss technical and electronic components distributor Daetwyler said it did not intend to make a higher offer for Premier Farnell (PIFLF), paving the way for U.S. rival Avnet (AVT) to take over the Raspberry Pi mini computer maker.
Premier Farnell last month withdrew a recommendation for the Daetwyler cash offer of 165 pence per share after U.S. rival Avnet’s bid of 185 pence.
Many analysts had expected Daetwyler to return with a higher offer, potentially sparking a bidding war.
However, Daetwyler said on Thursday that the terms of its previous offer were final and that the offer would lapse on Aug. 21.
Premier Farnell was down 4.3% at 183.75 pence, while Daetwyler’s shares were up 1.9% at 139.10 Swiss francs.
Premier Farnell was not immediately available for comment, while Avnet was not available for comment outside business hours in the United States.
Avnet had said the deal would enable them to capture market share earlier in the design process, while Daetwyler was looking to expand the global reach and scale of its product range through the deal.
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Daetwyler had said that if the board of directors decided not to pursue the acquisition, it would incur one-off deal costs of around 4 million to 8 million Swiss francs.
Daetwyler also faced one-off costs of around 35 million to 40 million francs for currency hedging and exchange rate losses, which could hit its financial result.