Premier Farnell quits Datwyler offer to recommend Avnet's tilt

28th Jul 2016 11:45

(ShareCast News) - UK mini-computer maker Premier Farnell has abandoned its recommendation on an offer by Datwyler Technical Components UK Ltd in favour of a rival and richer bid stumped up by Avnet, Inc.The Avnet offer -- at premium 185p a share in cash -- valued Premier Farnell's issued share capital at about £691m. The cash consideration implied a value of £868m.Avnet said it believed the combination of it and Premier Farnell represented a strong strategic fit and was thus highly attractive."Both companies share very similar strategic values and are highly complementary in terms of product range, distribution channels and geographic footprint," Avnet said.Just minutes after recommending the Avnet bid, Raspberry Pi-maker Premier confirmed it had withdrawn its earlier favour on Datwyler's offer.It said the Avnet offer was at a 12.1% premium to Datwyler's 165p a share tilt."In evaluating the Avnet offer, the board of Premier Farnell has considered various aspects ... including valuation, transaction timing and execution risk," it said.Premier considered Avnet's offer to "represent a superior offer ... as compared to the Datwyler Offer."