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Danish firm FLSmidth has won a bidding war with Scottish rival The Weir Group for Australian minerals processing manufacturer Ludowici.
The move comes after The Weir Group made a surprise bid for Ludowici in excess of an already high offer by FLSmidth.
Prior to the takeover Ludowici sat at around $3.50 on the ASX, but it’s value rocketed to a high of $11.45 in the midst of the takeover battle.
FLSmidth has offered $11.00 a share for Ludowici, and in a statement Weir Group CEO Keith Cochrane said it would not bid higher for the Australian company.
"While Ludowici represented an attractive opportunity to expand our market leading Australian business, our focus in any acquisition is to create value for Weir shareholders," he said.
"A materially higher offer would not have met the rigorous financial criteria which we apply to all acquisitions."
In a statement today Ludowici said the FLSmidth offer "continues to be unanimously recommended by the Ludowici board" in the absence of a better offer.
Following an initial offer of $7.20 a share FLSmidth CEO Jorgen Rasmussen told reporters he thought it was "most likely" Ludowici shareholders would accept the deal.
The Australian Takeovers Panel previously said Rasmussen’s comments had created uncertainty and had "the potential to mislead or confuse investors about the finality of FLSmidth’s proposed offer price".
The $11 a share offer by FLSmidth values Ludowici at $388 million.