Jan Carlson, CEO of Veoneer, on the floor of the New York Stock Exchange, on July 2, 2018.Brendan McDermid/Reuters
Shares in Veoneer Inc edged down on Tuesday after the auto tech firm stuck to its recommendation for Magna International’s bid after receiving an updated, non-binding offer from Qualcomm .
The Swedish company has become an attractive takeover target as its expertise in making advanced driver assistance systems fits in the plan for both Qualcomm and Magna in cornering a share in a growing business.
Qualcomm on Monday made a formal $37 per share bid for Veoneer in line with the offer announced last month and above Magna’s original $31.25 per share offer.
Qualcomm last month offered $4.6-billion to buy Veoneer, an 18.4 per cent premium to a July bid worth around $3.8-billion by Canada’s Magna that had already been accepted by Veoneer’s board.
Despite the bigger price tag, Veoneer said its merger agreement with Magna remains “in full force and effect” and the company’s board has not withdrawn its recommendation favouring a deal with Magna.
The company will however engage in negotiations with Qualcomm.
“There can be no assurances that Veoneer’s discussions with Qualcomm will result in a transaction that the Veoneer board of directors determines is superior to Veoneer’s pending transaction with Magna,” the Swedish firm said in a statement.
Veoneer’s Stockholm-listed shares fell 1.8 per cent in early trade on Tuesday.
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