Laser seller Coherent (COHR) - Get Report announced Monday that it has received an unsolicited acquisition proposal from MKS Instruments (MKSI) - Get Report, a seller of technologies that enable advanced processes and improve productivity.
Under the terms of MKS Instruments' proposal, each share of Coherent common stock would be exchanged for $115.00 in cash and 0.7473 of a share of MKS common stock.
On Jan. 19, Coherent announced that it had entered into a merger agreement with Lumentum Holdings (LITE) - Get Report, under which Lumentum, which sells optical and photonic products, would buy each share of Coherent common stock for $100.00 in cash and 1.1851 shares of Lumentum common stock.
Based on Friday's closing prices, MKS Instruments' offer amounted to $236 per share, or about 15% more than Lumentum's bid of $205.
After a trading halt because of the news that ran until 9:50 a.m. ET, Coherent shares were trading at $222.20, up 15.02%, on Monday. They closed Friday at $193.18, down 0.69%. On Monday, MKS recently traded at $152.13, down 6.28%. They closed Friday at $193.18, down 0.69%. Lumentum recently traded at $91.54, up 3.11%.
“Coherent’s board of directors is evaluating MKS’ proposal and has not made a determination as to whether it is superior to the Lumentum transaction under the terms of Coherent’s merger agreement with Lumentum,” Coherent said in a statement. "After consulting with its financial and legal advisors, however, Coherent’s board of directors has determined that MKS’ proposal could lead to a transaction that is superior to its pending transaction with Lumentum and, accordingly, Coherent has determined to engage in discussions with MKS to further evaluate the comparative benefits and risks of MKS’ proposed transaction.”
Coherent added, however, that “notwithstanding its receipt of MKS’ proposal and pending discussions between Coherent and MKS, Coherent’s board of directors continues to recommend Coherent’s merger agreement with Lumentum to its stockholders,” Coherent said.