AMSTERDAM, Jan 11 (Reuters) - Shareholder Hermes Focus Asset Management said on Monday it would not tender its shares in Dutch photocopier and printing systems maker Oce NV to Canon, fuelling hopes for an improved offer from Canon.
The Japanese camera and office equipment maker's 730 million euro ($1.06 billion) offer has previously been opposed by 10 percent shareholder Orbis Portfolio Management.
Hermes said while it welcomed the strategic direction of the intended merger, it was concerned 'the offer terms do not represent a fair sharing of value between the shareholders of Canon and those of Oce'.
'Were Oce to achieve Canon Business Machines' level of operating profitability, which we recognize is among the highest in the industry, Oce's equity would indicatively be worth some four times as much as the offer price,' Hermes said in an open letter to Oce and Canon management.
Oce said it planned to respond later on Monday.
Hermes said it currently holds 3.3 percent of Oce shares.
Canon in November offered 8.60 euros for the Dutch company, which was a 70 percent premium to the share price just before the bid.
Canon said it would declare the offer for Oce unconditional if 85 percent of shares were tendered.
Since end-November Oce shares have been hovering just below the 8.60 offer price, indicating that shareholders expect the offer to succeed.
Oce competes with Xerox and Konica Minolta. (Reporting by Harro ten Wolde; Editing by Rupert Winchester ) ($1=.6879 Euro) Keywords: OCE/ (harro.tenwolde@reuters.com; Reuters Messaging: harro.tenwolde.reuters.com@reuters.net; +31 20 504 5017) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Japanese camera and office equipment maker's 730 million euro ($1.06 billion) offer has previously been opposed by 10 percent shareholder Orbis Portfolio Management.
Hermes said while it welcomed the strategic direction of the intended merger, it was concerned 'the offer terms do not represent a fair sharing of value between the shareholders of Canon and those of Oce'.
'Were Oce to achieve Canon Business Machines' level of operating profitability, which we recognize is among the highest in the industry, Oce's equity would indicatively be worth some four times as much as the offer price,' Hermes said in an open letter to Oce and Canon management.
Oce said it planned to respond later on Monday.
Hermes said it currently holds 3.3 percent of Oce shares.
Canon in November offered 8.60 euros for the Dutch company, which was a 70 percent premium to the share price just before the bid.
Canon said it would declare the offer for Oce unconditional if 85 percent of shares were tendered.
Since end-November Oce shares have been hovering just below the 8.60 offer price, indicating that shareholders expect the offer to succeed.
Oce competes with Xerox and Konica Minolta. (Reporting by Harro ten Wolde; Editing by Rupert Winchester ) ($1=.6879 Euro) Keywords: OCE/ (harro.tenwolde@reuters.com; Reuters Messaging: harro.tenwolde.reuters.com@reuters.net; +31 20 504 5017) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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