EQT Makes Final $12.8 Billion Bid to Take Over Intertek — Update

By Adria Calatayud

Swedish buyout group EQT again sweetened its takeover bid for U.K. testing specialist Intertek Group and said a proposal valued at 9.40 billion pounds ($12.79 billion), including dividends, was its final offer.

The move marks EQT's last-ditch attempt to reach a friendly deal after some Intertek shareholders signaled, even before the latest offer was disclosed, that they wanted the company to engage with its suitor.

In response, Intertek said Tuesday that it was reviewing EQT's final proposal with its advisers. The company turned down three prior bids from EQT in recent weeks, arguing they undervalued it, opting instead to stick to a plan to split its energy-and-infrastructure business from the rest of the group's operations.

Shares in Intertek were up 6% at 52.80 pounds in European morning trading.

EQT said it submitted a final proposal with the goal of moving swiftly toward formalizing a recommended offer.

"EQT believes the final proposal delivers certain and accelerated cash value at a full valuation for Intertek shareholders, superior to the range of outcomes associated with Intertek's standalone prospects," it said.

Under EQT's latest proposal, Intertek shareholders would get 60 pounds in cash and be entitled to keep 107.7 pence a share previously declared by the company, or 61.08 pounds a share in total. Excluding the dividend, EQT's bid values Intertek at 9.24 billion pounds.

EQT's cash bid of 60 pounds a share represents a 59% premium to Intertek's latest share price before the takeover interest emerged, but is still below its pandemic-era peak. EQT's previous cash proposals of 51.50 pounds, 54 pounds and 58 pounds a share were all rejected by the Intertek board.

When Intertek's board rejected EQT's previous bid last week, it said the proposal undervalued the company and brought significant execution risk. At the time, EQT said it was disappointed by the lack of engagement from Intertek's board.

With EQT declaring its fourth offer final, the ball is now in Intertek's court.

The FTSE 100 company--which provides testing, inspection and certification services--outlined a plan to split its energy-and-infrastructure business through a sale or demerger last month, days before EQT disclosed it had made a takeover proposal. Last week, Intertek said potential buyers had expressed interest in its energy-and-infrastructure unit.

Activist investor Palliser Capital, which has built a small stake in Intertek, said Tuesday that EQT's latest proposal represented an attractive opportunity for Intertek shareholders that compares favorably to the outcomes the company could achieve through a strategic review.

"We strongly urge the Intertek Board to engage with EQT now to establish a constructive dialogue, allow any required due diligence to take place and secure a favorable transaction for shareholders," Palliser said.

Both Palliser and PrimeStone Capital, another activist investor, publicly called on Intertek to engage with EQT to explore the opportunity its proposals represented before the buyout group made its final proposal. PrimeStone Capital said its funds had a stake of about 0.5% in Intertek.

Under U.K. takeover rules, EQT has until May 14 to either announce a firm intention to make an offer for Intertek or walk away, it said.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

May 12, 2026 04:53 ET (08:53 GMT)