Apple supplier AMS sparks bidding war for Osram

Austrian sensor maker and Apple supplier AMS triggered a bidding war for the German lighting group Osram, trumping a bid by Bain Capital and Carlyle with a cash offer valuing the company at 4.3 billion euros ($4.8 billion).

Kirsti Knolle for Reuters:

AMS said it could create a global heavyweight in sensors and photonics with the acquisition of Osram, a leader in automotive lighting technology whose share price has been depressed by profit warnings, doubts over its strategy and a weak car market.

The offer, which is subject to Osram waiving a standstill agreement, would beat Bain Capital and Carlyle’s 4 billion-euro bid that has been recommended by Osram’s boards but slammed as too low by its biggest shareholder Allianz Global Investors.

MacDailyNews Take: AMS has for some time now been looking for ways to diversify in order to lessen their heavy dependence on Apple whos eorders account for some 40% of revenue, according to analyst estimates quoted bu Reuters.

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