Can De La Rue Negotiate a Higher Premium?

De La Rue rejected a bid from Oberthur Technologies as too low, but until the firm resolves its production problems, it has little negotiation power

Brett Horn 7 December, 2010 | 9:29AM

While the rumours proved to be true that De La Rue (DLAR) had received a bid from its French rival, Oberthur Technologies, worth £895 million (or 905p per share), the company has officially spurned the offer, stating that the proposal was highly opportunistic and "in no way reflects the fundamental value" of the firm. Having thought that the 900p-1,000p per share bid bandied about earlier today was a bit on the rich side (considering the issues that are currently impacting De La Rue), we were surprised to see that the actual offer was at the lower end of this range. Management obviously believes that more can be

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
De La Rue PLC156.00 GBX-0.51

About Author

Brett Horn  Brett Horn is an associate director in the equity research department.

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