Loxam outbids TVH for Lavendon
Loxam has increased its offer for Lavendon to £2.50 a share, topping the raised offer made by TVH yesterday by a full 20p. See TVH raises its offer and has 20% of Lavendon
The formal offer - which values the company at £425 million (£583 million when the company's net debt is included) - will be mailed out to shareholders later today. The latest bid was more than 8p above yesterday's closing price. Although in early trading Lavendon shares quickly surged to £2.58, suggesting that a good few speculators believe that TVH will make a further counter offer – possibly in the region of £2.60?
The Lavendon board has recommended that shareholders accept the increased offer from Loxam.
This battle is now quickly moving towards a climax. TVH stated at the beginning that its offer of £2.05 a share was final, now it faces the difficult decision of whether to go to £2.60 or more or drop out of the bidding.
While TVH has a total aversion to paying over the odds for anything, it probably hates to lose even more - so anything is possible. At this stage it is probably looking at a profit of around £9 million on the shares it has already acquired - although it will also be facing some substantial adviser fees.
It is hard to say which of these two will benefit the most from the Lavendon acquisition. what we are seeing here is a fight for dominance of the European powered access rental market. The surprise is that we have not seen an outsider enter the bidding. If it is going to happen this is the time for a late entrant.
Watch this space