Basel-based transport and logistics company Panalpina confirms that it has received a revised, non-binding proposal from Danish rival DSV to acquire the company at a price of CHF180 per share, all in cash.
“According to its fiduciary duties, the Board of Directors of Panalpina is reviewing the revised proposal from DSV in conjunction with its professional advisers. Further announcements will be made as appropriate,” said a Panalpina official statement released February 15.
This follows the Swiss freight forwarder’s earlier statement the same day that it is in discussions with Kuwaiti-based counterpart Agility Group on “potential strategic opportunities” with regard to their respective logistics businesses.
Talks between the two companies are at a preliminary stage, the Panalpina statement said.
Last January 16, Panalpina announced receiving “an unsolicited, non-binding proposal from DSV to acquire the company at a price of CHF 170 per share, comprising a mix of cash and DSV shares.”
DSV then confirmed making a proposal to acquire Panalpina for over US$4.1 billion. In a written statement on the same date, DSV said it made the indicative and private acquisition proposal to Panalpina’s Board of Directors, seen as a move closer to the world’s top three freight transport companies.
DSV, the world’s fifth largest freight forwarder, has been expanding rapidly in recent years through a number of acquisitions. Last year, DSV failed in its attempt to buy Ceva Logistics.
Reports said Panalpina is seeking a tie-up with Agility as it tries to repulse a takeover from DSV. Reports further said that negotiations about combining Panalpina and Agility are progressing, and that a transaction is backed by the Ernst Goehner Foundation, Panalpina’s biggest shareholder that earlier this month expressed opposition to DSV’s unsolicited offer.
However, several minority shareholders in Panalpina support the DSV offer, and have expressed serious concern over the Agility deal. Some industry watchers say it is doubtful that Panalpina would be able to pull off an integration with Agility.
