U.S. Laser Maker Accepts Swiss Firm’s Takeover Bid
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NEW YORK — Laser maker Spectra-Physics Inc. has agreed to a sweetened $226.67-million takeover offer from Swiss chemical giant Ciba-Geigy Ltd. after rejecting as inadequate a $198.76-million bid from its largest shareholder.
The cash agreement announced on Monday appeared to end prospects of a bidding war for Spectra-Physics between Ciba-Geigy and Reliance Financial Corp., a Spectra-Physics shareholder owned by takeover strategist Saul P. Steinberg.
“I think some arbitragers thought there might be some fireworks on the part of Reliance, but the agreement’s tenor suggests this could be the final chapter,” said William D. Tichy, an analyst who follows Spectra-Physics for the New York investment firm Dean Witter Reynolds.
Ciba-Geigy owns about 18.8% of Spectra-Physics’ 7.65 million common shares outstanding. Reliance owns about 13%.
Through its U.S. subsidiary Ciba-Geigy Corp., the Swiss company has been attempting to acquire Spectra-Physics because it claims that Reliance Financial has been undermining Ciba-Geigy’s relationship with the company.
Under the agreement, Ciba-Geigy will pay $36.50 a share cash for all Spectra-Physics shares it doesn’t own, compared to $32 a share offered two weeks earlier.
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