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AMS Says No 'sufficient Basis' For Continuing Takeover Talks With Osram Licht

Austria's AMS AG said that it did not see sufficient basis for continuing its discussions with Osram Licht (OSAGF.PK) to acquire the German lighting company, one day after Osram made public the approach by AMS.

"ams requires opportunities to be strategically compelling and demonstrably value enhancing in order to consider pursuing a M&A transaction. However, following an evaluation of recent developments ams does not see a sufficient basis for continuing these discussions with OSRAM Licht AG," AMS said in a statement on Tuesday.

Osram Monday said it received a non-binding takeover offer of 38.50 euros per share from AMS. AMS indicated that the funding of the offer shall be supported by a temporary bridge-loan facility of 4.2 billion euros, which in part shall be refinanced at a later date by a capital increase in the amount of at least CHF 1.7 billion.

"On the basis of the information as per today, the Managing Board of Osram Licht AG does regard the probability of this transaction materializing as rather low," Osram said.

Earlier this month, Osram Licht said that its supervisory and managing boards accepted a 3.4 billion euros or $3.8 billion takeover offer from Bain Capital and Carlyle Group LP. The two buyout firms offered 35 euros per share in cash.

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