Backing out: Colorado-based Advanced Energy Industries said ‘it does not intend to make an offer’ for London-listed XP Power
Shares in XP Power tumbled after a US rival abandoned plans to buy the company.
The stock fell 10.1 per cent, or 158p, to 1402p after Colorado-based Advanced Energy Industries said ‘it does not intend to make an offer’ for the London-listed group.
The announcement came after the Americans last month revealed XP Power had turned down three takeover proposals since October including a final one in May worth 1950p a share (or £468million).
At the time, XP Power branded the bids ‘highly conditional’ and ‘opportunistic’.
The firm, which was set up in the UK in 1988 and designs power converters for blue-chip companies, insisted the £468million offer still ‘fundamentally undervalues the company and its prospects’.
In an update yesterday, Advanced Energy said it has since ‘sought to engage with the XP Power board of directors’ but complained of a ‘lack of any progress’ over price.
The American company said this has ‘prevented it from accessing due diligence necessary to make a firm offer’.
XP Power hit back, saying it has had ‘no contact from Advanced Energy’ since its previous bids were rejected.
Russ Mould, investment director at AJ Bell, said: ‘It’s clear this takeover deal is toast.’
The spat comes as analysts warn the ‘relentless’ takeover activity on the London stock market amounts to a ‘feeding frenzy’ as would-be buyers hunt for bargains.