Axis-Shield (LON:ASD, OSE:ASD) is shooting up after news broke that Alere Inc. (NYSE:ALR) had approached Axis-Shield’s board with a highly preliminary cash offer for the entire share capital of Axis-Shield in June. The Board had unanimously rejected the proposal of 460p (around 39,85 NOK, representing a 37% premium on Tuesday close) on the basis that it feels the bid fundamentally undervalues Axis-Shield.
Alere says it is still keen to do a recommended takeover offer for Axis-Shield and thus has made proposal public. The proposal has a current earnings multiple of 44. Axis-Shield is now trading clearly above the proposed price.
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