Vitesco: Announces Its Board Supports Increased Schaeffler Tender Offer and Merger

Narrow-moat-rated Vitesco announced the signing of a business combination agreement with Schaeffler, and that its executive and supervisory boards support the agreement and the increased tender offer price of EUR 94, up from the previous EUR 91 (see our Oct. 9 note). However, the company’s “Joint Reasoned Statement of the Executive Board and the Supervisory Board,” says that three investment banks and the supervisory board found that the EUR 94 offer price is “inadequate from a financial point of view.” The board reasoned that, “in the current market environment, the tender offer provides a potentially attractive exit opportunity for risk-averse investors or investors seeking a short-term investment.”