Cooper Industries announced it is reconsidering its takeover offer for Laird Technologies. The company said Laird has yet to allow due diligence since Cooper announced its interest on 16 June. Cooper is also concerned about the announcement by Laird since then that it plans to exit its handset antennae business, which could affect the value of the company. Laird's share price has risen to over 200 pence per share since it rejected Cooper's initial offer of 158 pence per share. Cooper has a deadline of 1 August under UK securities law to come with a better offer. Cooper said it believes that Laird's current share price is driven by market expectations of an offer for the company rather than by the fundamental value of Laird. Based on consensus earnings estimates for the current year of approximately 16.5p, Cooper's previous proposal represents a multiple of 11.2x earnings. Due to the current high share price and the reluctance of Laird's board to allow due diligence, Cooper said it's now considering its continued level of interest in Laird, and "there can be no certainty that any formal offer will be made".
