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Coherent Chooses II-VI Bid; Lumentum Says Its Offer Is Superior

II-VI won the bidding war for laser-tech provider Coherent. Lumentum, the loser in the battle, said its offer was better.
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After numerous bids and counterbids, laser-technology company Coherent  (COHR) - Get Coherent, Inc. Report chose an acquisition proposal from II-VI  (iiVI)  that it received last week

The Santa Clara, Calif., company said it gave due consideration to a competing bid that Lumentum  (LITE) - Get Lumentum Holdings, Inc. Report made earlier this week. 

The company said the board considered the comparative benefits and risks of both bids, including long-term and near-term financial opportunities and risks associated with each bid.

Lumentum said that Coherent's board chose to accept an offer "that is inferior in overall value and cash consideration." 

The winning terms call for II-VI to pay $222 cash and 0.91 share for each Coherent share.

Coherent will also pay Lumentum a breakup fee of $217.6 million as part of their previous agreement. 

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Lumentum's most recent offer was valued at $283.12 a share compared with II-VI's at about $281.21, based on closing prices Wednesday. 

Earlier this week, Lumentum had raised its bid to $230 a share cash and 0.6724 share for each Coherent share. 

Coherent's sale saga dates to mid-January when Lumentum initially proposed a bid valued at about $5.7 billion. 

Lumentum was then outbid by unsolicited offers from MKS Instruments and then II-VI in February. 

MKS Instruments  (MKSI) - Get MKS Instruments, Inc. Report two weeks ago abandoned its effort to buy Coherent. 

Coherent's shares at last check were down 1% at $255. Lumentum's jumped 5.2% to $83.11. And II-VI shares were down 6.4% at $62.95.