Special situation quickie: Osram take-over at EUR 35 /share
This will be a very short one:
Bain Capital and Carlyle want to take over Osram at 35 EUR per share. The offer is friendly as Managment and Supervisory board have agreed to the takeover.
The offer runs until beginning of September and minimum acceptance level is 70%.
There is no detailed offer document out now yet.
Nevertheless I established a 2,5% position at ~33.1 EUR, providing a 5,7% potential return.
Major risk is in my opinion politics (loss of jobs), chances to the upside could come form activists pushing for a higher price. In the meantime there could be clearly hick-ups (not reaching the 70% because of activist involvement) but Bain and Carlyle are pros.
The buyers are top tier PEs who execute this kind of offers well and have the money.
For those investors who remember: I looked at the Osram spin-off 6 years ago, but then failed to buy the stock because my limit was a few cents too low. So I know the company relatively well. This doesn’t of course guarantee any success ……