Lumentum raises takeover offer for Coherent

NEW YORK: Coherent Inc said optical fiber firm Lumentum Holdings Inc had raised its offer for the company to US$6.9bil (RM28.33bil) following a three-way takeover battle for the laser firm.

Under its new bid, Coherent shareholders will receive US$220 in cash and 0.61 Lumentum shares for each share held.

Coherent agreed to a US$5.7bil deal with Lumentum in January, attracting other bidders looking to grow their share of a market set to benefit from the rising adoption of 5G and consumer electronics.

The Wall Street Journal reported late on Wednesday that optical components maker II-VI Inc submitted a new takeover offer for Coherent worth roughly US$7bil, or around US$285 a share.

Last month, MKS Instruments offered US$6bil, followed by a US$6.4bil bid by II-VI.

Ever since, Lumentum and II-VI have engaged in a bidding war, making at least two counter offers each by sweetening the cash component. Lumentum also said private-equity firm Silver Lake would make a US$1bil equity investment in the combined company. — Reuters

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