GE Drops Bid to Acquire Germany's SLM Solutions Group
October 26 2016 - 2:15PM
Dow Jones News
By Sarah Sloat and Natascha Divac
FRANKFURT -- General Electric Co. said Wednesday its EUR672
million bid for 3-D printing company SLM Solutions Group AG has
failed after an activist investor amassed enough shares to foil the
deal.
GE's offer for SLM was dependent on securing 75% of the German
company's shares, but last week a fund belonging to Elliott
Management Corp. said it held more than 20% of SLM, creating a
significant stumbling block.
Elliott said previously it "believes that GE's offer is not in
the best interests of SLM shareholders."
GE said the minimum acceptance threshold wasn't met at the time
of the expiration of the acceptance period on Monday.
"Consequently, the offer has lapsed," GE said in a press
release.
Shares of SLM Solutions fell more than 5% following the
announcement in after-market trade.
GE's bid for SLM was part of a planned $1.4 billion push into
3-D printing in Europe. GE also bid roughly $700 million for
Sweden's Arcam AB, another company active in so-called
additive-manufacturing technology.
The Arcam offer is also in question. Elliott has taken a 10.14%
stake in the Swedish company, making it highly unlikely GE can meet
the minimum acceptance threshold of at least 90% of shareholders
agreeing to the deal.
GE had unveiled plans to buy both companies in September to
expand its ability to make aircraft components and other parts
using 3-D printing technology.
Write to Sarah Sloat at sarah.sloat@wsj.com and Natascha Divac
at natascha.divac@wsj.com
(END) Dow Jones Newswires
October 26, 2016 14:00 ET (18:00 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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