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Osram's Top Shareholder Rejects Acquisition Offer Made By Bain And Carlyle

Allianz Global Investors, holding over nine percent of the outstanding shares in German lighting company Osram Licht AG (OSAGF.PK), said Thursday it is minded not to accept the offer despite it being recommended to shareholders by the Board of Management and Supervisory Board of Osram.

In early July, 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 private equity buyout firms offered 35 euros per share in cash.

Having sought to engage with Osram's Board of Management and Supervisory Board over the past year, AllianzGI finds it regrettable that they appear to have insufficient confidence in the business they are managing that they have chosen instead to sell out at what looks to be a knock-down price.

The offer for Osram shares made by Bain and Carlyle implicitly supports AllianzGI's view that there is upside potential for Osram and its technology in the foreseeable future.

However, as its largest existing shareholder, AllianzGI has commissioned its own independent fairness opinion pursuant to IDW S8 standard on the evaluation of the company, the results of which support AllianzGI's view that Osram shares are worth more than the 35 euros per share currently on offer.

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