Zapped

17 March 2021 By Robert Cyran Follow @rob_cyran

Lumentum raised its offer for laser-maker Coherent to $6.9 bln, edging ahead of two rival bidders. All look to be overpaying – in Lumentum’s case by around $1 bln. Its shares have fallen as a result. Recovering some of that lost market value wouldn’t be a bad consolation prize.

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Lumentum on March 17 said it raised its offer to acquire laser-maker Coherent to $6.9 billion from the $5.7 billion it offered in January, in a challenge to competing bids from two other companies.

The optical fiber specialist’s new offer includes $220 per share in cash and 0.61 shares of Lumentum stock for each Coherent share.

As part of the revised offer, private equity firm Silver Lake agreed to invest $1 billion in the combined firm in the form of convertible preferred shares.

II-VI in February offered to acquire Coherent for $6.4 billion in stock and cash after MKS Instruments bid $6 billion. Both later raised their offers. MKS said on March 8 that it was disappointed that Coherent’s board did not declare its offer to be the best.

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