Datwyler Says Still Reviewing Options for Pursuit of PremierBy
Swiss firm’s bid for Raspberry Pi supplier trumped by Avnet
Forgoing bidding war could cost Datwyler 48 million francs
Datwyler Holding AG said it’s still considering whether to pursue a takeover of Premier Farnell Plc after the U.K. supplier of Raspberry Pi mini computers agreed to a 691 million-pound ($896 million) counter bid from Avnet Inc.
In the event Datwyler walks away from a bidding war, it would incur costs of as much as 48 million francs ($49.2 million), including transaction costs and hedging and exchange rate expenses, the Swiss company said in an earnings release on Friday. An announcement will be made in due course, it said.
Datwyler’s 615-million-pound bid for Premier Farnell was trumped by Avnet’s cash offer, made a month after the U.K. voted to leave the European Union. The outcome of the poll weakened the pound against the dollar, meaning that the price tag in US dollars for Phoenix, Arizona-based Avnet shrunk by $66.5 million compared with nine days before the referendum, when Datwyler struck its deal.
Datwyler’s Chief Executive Officer Paul Haelg has signaled that he wants to expand in the U.S., Asia and other European markets, and the company reiterated Friday that a successful takeover would turn the Swiss company into “a leading high-service electronic components distributor” with annual revenue of about 1.8 billion francs. Revenue jumped 7.3 percent to 621.1 million francs in the first half.
The shares increased 1.3 percent to 139.2 francs as of 9:30 a.m. in Zurich.
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