Medical diagnostics firm Axis-Shield bows to Alere’s raised offer of £235 mn

Axis-Shield, the UK-based medical diagnostics firm ended a three-month resistance for takeover by agreeing to be bought by its larger rival Alere Inc, after the US company marginally upped its offer to £235 million.

Axis-Shield, the Anglo-Norwegian medical diagnostics firm that develops and manufactures in-vitro diagnostic tests, had rejected the £230-million ($375.4 million) bid from Alere in August, saying the takeover offer fundamentally undervalued the company and its future prospects. (See: British medical diagnostics firm Axis-Shield rejects Alere's $375.4-million bid)

Last week, The NYSE-listed Alere raised its stake in Axis-Shield to 30 per cent, and lowered its acceptance level to over 50 per cent from 90 per cent.

The board of Axis-Shield yesterday said that it would recommend the 470-pence per sweetened share offer, which is about 2 per cent higher than Alere's original offer and 4 per cent higher than Axis-Shield's closing price on 5 October.

''Based on the feedback from these shareholders, as well as the ongoing volatile economic and market backdrop, the board believes that Alere's revised acceptance condition of 50 per cent will most likely be met, particularly in the light of their current shareholding of 29.9 per cent,'' said Axis-Shield in a statement.

''Furthermore, the board believes that the probability of sufficient shareholders accepting the offer by Alere over and above this revised acceptance condition, such that the number of Axis-Shield shares held in public hands falls below the UK Listing Authority's listing eligibility threshold of a free float of 25 per cent, has increased materially,'' it added.