Activist investor Palliser Capital has publicly urged the board of Italian pharmaceutical firm Recordati (RECI.MI) to withdraw support for a €51.29 per share buyout offer from CVC Capital Partners and Groupe Bruxelles Lambert (GBL), claiming it materially undervalues the company.
📌 Key Takeaways & Important Metrics:
- Higher Price Target: Palliser insists the consortium must raise its all-cash offer to at least €60 per share to ensure fair value for minority shareholders.
- Deal Valuation: The current €51.29/share bid by CVC and GBL (via Respighi BidCo) values Recordati at ~€10.7 billion ($12.35 billion), aiming to delist the stock from the Milan exchange.
- Divided Board: Recordati’s 10-member board is split: 6 voted in favor, while all 4 independent directors deemed the offer inadequate and rejected it.
- Shareholder Pushback: Palliser and six major minority investors oppose the offer terms, warning that the deal structure unfairly pressures shareholders to tender.
- Tender Window: Recordati shares rose 0.5% to €52.25 (trading above the offer price). The tender offer runs until October 15.
💥 The Big Picture: With shares trading above the buyout bid and independent directors standing firm, private equity buyers face mounting pressure to sweeten their offer before the deadline.