AMSTERDAM, Feb 3 (Reuters) - Hermes Focus Asset Management has raised fresh concerns about governance and valuation in the planned acquisition of Dutch photocopier and printing systems maker Oce NV by Japanese group Canon
Hermes holds 3.3 percent of Oce whose shares have been trading above Canon's 8.60 euros offer price for 14 sessions. The offer values Oce at 730 million euros ($1.02 billion).
In an open letter to both companies' boards, Hermes said on Wednesday it 'welcomes Canon's and Oce's continued intention to pursue a merger' but it had questions it wanted addressed by Oce's board before a Feb. 12 shareholder meeting.
Hermes said the offer did not address the full value of synergies in merging the two companies or in restructuring what it called Oce's 'sub-optimal' structure.
Hermes also asked whether minority shareholders would be represented fairly if they did not tender into the offer and remained investors in Oce.
On Jan. 11, Hermes said it would not tender into Canon's offer, adding to 10 percent holder Orbis Portfolio Management's opposition.
Canon said on Jan. 27 it would not raise its offer.
Oce shares closed at 8.72 euros on Tuesday.
(Reporting by Ben Berkowitz; Editing by Dan Lalor)
($1 = 0.7188 euro) Keywords: OCE CANON/ (ben.berkowitz@thomsonreuters.com; +31 20 504 5011; Reuters Messaging: ben.berkowitz.reuters.com@reuters.net) 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.
Hermes holds 3.3 percent of Oce whose shares have been trading above Canon's 8.60 euros offer price for 14 sessions. The offer values Oce at 730 million euros ($1.02 billion).
In an open letter to both companies' boards, Hermes said on Wednesday it 'welcomes Canon's and Oce's continued intention to pursue a merger' but it had questions it wanted addressed by Oce's board before a Feb. 12 shareholder meeting.
Hermes said the offer did not address the full value of synergies in merging the two companies or in restructuring what it called Oce's 'sub-optimal' structure.
Hermes also asked whether minority shareholders would be represented fairly if they did not tender into the offer and remained investors in Oce.
On Jan. 11, Hermes said it would not tender into Canon's offer, adding to 10 percent holder Orbis Portfolio Management's opposition.
Canon said on Jan. 27 it would not raise its offer.
Oce shares closed at 8.72 euros on Tuesday.
(Reporting by Ben Berkowitz; Editing by Dan Lalor)
($1 = 0.7188 euro) Keywords: OCE CANON/ (ben.berkowitz@thomsonreuters.com; +31 20 504 5011; Reuters Messaging: ben.berkowitz.reuters.com@reuters.net) 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.
