Osram Feeds Union Anger After Backing $4.1 Billion AMS Offer

  • Labor groups concerned AMS takeover would lead to job cuts
  • AMS proposal is higher than earlier bid by Bain and Carlyle

Osram’s headquarters in Munich.

Photographer: Michaela Handrek-Rehle/Bloomberg
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Osram Licht AG recommended a 3.7 billion-euro ($4.1 billion) takeover bid from AMS AG on the basis of price, risking a backlash from labor groups worried about potential job cuts that may come with the deal.

The terms of AMS’s 38.50 euro-a share proposal eclipse Osram’s lingering concerns about how the takeover will be funded, the German lighting maker said in a statement on Monday. The Munich-based former Siemens AG unit had previously backed a lower offer from private equity groups Bain Capital and Carlyle Group LP.