Metso rejects second Weir offer

Metso is reported as having rejected a second takeover bid from the UK’s Weir Group that increased the latter’s valuation of Metso by 20%. The improved offer of €30.49 (US$41.54) per share valued the Finnish company at US$4.5 billion, up from the initial April offer of US$25.6 (US$34.88) per share.

In a statement, Weir reported that the two company’s shareholders would have held some 40% of the unified entity and that £150 million (US$252.6 million) in savings as a joint group would have been possible. The company went on: “Weir believes it made a compelling proposal but remains financially disciplined and therefore does not intend to pursue this opportunity further at this time.”