Investindustrial, Diego Della Valle, Mediobanca, Pirelli and UnipolSai Saturday, June 25 raised the tender offer price on RCS from 0.70 euro to 0.80 euro per share all in cash.
This is the answer of the consortium to the move of the rival Cairo Communication (see here a previous post by BeBeez) that last Friday, June 17, had increased the share swap proposed from 0.12 to 0.16 Cairo shares for each RCS share. This offer implied an assessment of the RCS shares of 0.67 euro if we consider the price of Cairo Communication registered on Friday, 25 June (€ 0,762 ,-2,87%) and the price of RCS (€ 4,252 , -3,58%).
The amount of money put on the table by the consortium led by Andrea Bonomi (managing principal of Investindustrial) is € 323,15 ml. Now Cairo Communication has a new deadline (next Friday) to eventually restructure its offer. To equal the Bonomi offer Mr. Cairo should raise the share swap from 0.16 to about 0.185.
Meanwhile last Thursday, June 23, the RCS Board (talking about Cairo’s improved offer) had communicated that “has unanimously determined that the consideration offered, although improved, is not appropriate for owners of RCS shares” and, on the planned merger between RCS and Cairo Communication, stressed “the lack of a range about an indicative exchange ratio and the uncertainty over the start of the merger and its terms and conditions” (download the press release here).
