Bank note printer De La Rue rejects £750 million takeover offer from Oberthur

De La Rue, the world's biggest non-governmental bank note printing company that was recently hit by a major quality crisis arising from complaints from its customer Reserve Bank of India, is reported to have received and rejected an unsolicited £750-million (approximately Rs5301.75 or $1.2 billion) takeover bid from French rival Oberthur Technologies.
 
The secret takeover approach initiated a few weeks back by privately held Paris-based Oberthur, which was reported yesterday by Sky News, comes after De La Rue supplied faulty bank note security paper in August 2010 to The Reserve Bank of India, one of its biggest customers.
 
The all-cash takeover offer valued the printer of sterling note paper for the Bank of England at about £750 million.

The offer was rejected by the 189 year-old De La Rue reportedly for undervaluing the company.

Sky News said that Oberthur is now understood to be considering its next move and may decide to increase its offer.
 
De La Rue, a 189 year-old company based in Basingstoke, UK, is the world's largest commercial security printer and papermaker, for over 150 national currencies and provides a wide range of security documents such as passports, authentication labels and fiscal stamps.
 
It is also is a leading provider of cash sorting equipment and software solutions to central banks, helping them to reduce the cost of handling cash.
 
With 2009 sales of €905 million, Oberthur Technologies, founded by printer and lithographer, François-Charles Oberthür in 1842, is a world leader in the field of secure technologies providing security services in smart cards, printing, identity, and cash protection.
 
It specialises in the production of banknotes, checks and other fiduciary documents in more than 50 countries and is a leader in the emerging market of intelligent systems to secure cash-in-transit and ATM's.
 
In 1999 Oberthur had acquired the smartcards division of De La Rue in a friendly takeover, but its current hostile attempt to acquire the whole of De La Rue may come under intense scrutiny by the UK government.
 
The UK government may oppose a foreign company taking over De La Rue since two of its main customers are The Bank of England and the UK Passport Agency.
 
The UK Monopolies commission had rejected a takeover bid for De La Rue by a UK-based entertainment company The Rank Organisation plc in 1968, citing the takeover would be against public interest.