After a week-long bidding battle, it is now clear that the lighting manufacturer Osram initially remains independent. The company could not attract enough Osram shareholders for its € 4.5 billion bid.
Only the owners of 51.6 percent of the shares of the traditional Munich-based company accepted the offer of 41 euros per share. As a result, AMS missed the self-imposed goal of acquiring 62.5 percent of the Osram shares. The Osram share crashed after the announcement of the failed acquisition and is currently just under six percent in the red.
Osram executive floor expressed clear concerns
Nevertheless, AMS CEO Alexander Everke does not want to abandon his dream of creating a strong brand for optical sensors and optoelectronics: "Our vision with Osram is to create a globally leading supplier of sensor solutions and photonics based on European technology that Europe will maintain its world-leading position in optical technologies, "said Everke.
On the other hand, Osram announced that it wanted to remain independent: "After the failure of the previous acquisition attempts, we now retain our independence and shape our own future," said Olaf Berlien, CEO of Osram.
The management of the Munich-based lighting manufacturer invited the AMS leadership to discussions "on how a meaningful and mutually beneficial cooperation within the framework of the legal requirements could look like". Although Osram's Board and Supervisory Board had endorsed AMS's takeover bid, it had so many concerns that many regarded it as a hidden no.
Takeover should bring money and planning security
Osram now remains independent, but writes the company high losses. In the course of the bidding war, AMS bought just under 20 percent of Osram shares on the stock exchange and is now the largest shareholder. One of the main concerns with Osram was the funding. Osram CEO Olaf Berlien and Supervisory Board Chairman Peter Bauer had decided not to sell their own shares to AMS.
Because in order to take over Osram, AMS wanted to borrow more than EUR 3.9 billion, despite the already high level of long-term debt of more than EUR 1.4 billion.
For this reason, the IG Metall and the Osram works council are against the takeover - the employee representatives fear a dismantling of Osram, so that ultimately the worldwide 24 000 employees would bear the costs of the takeover.
AMS wanted to raise its own money with a capital increase - the plan was to spend and sell new shares for 1.5 billion euros. It is unclear how it goes now with Osram. Osram's Board of Directors and Supervisory Board initially supported a takeover by the two US financial investors Bain Capital and Carlyle.
Due to the rapid technological change in the lighting industry, the Osram management floor estimates that permanent investments are necessary. But as the company, which is over 110 years old, is currently writing losses, financing future projects is very difficult.
According to the management, the takeover by investors would have given Osram both money and planning security for the next few years. In any case, AMS boss Everke wants to pursue his takeover plans based on the 19.99 percent stake in Osram.
