Fidessa share price leaps as bidding war erupts
A Fidessa bidding war erupted this afternoon after the UK financial tech firm revealed two parties had tabled offers to rival a £1.4bn approach from Switzerland’s Temenos.
Shares in the FTSE 250 company rose sharply in the wake of an announcement shortly before 1pm and ended the day almost 14 per cent higher.
Temenos takeover talks were first announced in February with the board recommending shareholders accept the approach from the banking software firm. A 5 April general meeting for investors to consider the offer was today postponed, “in order to explore in more detail the possible alternative offers”.
Read more: Fidessa trades above Temenos offer price in £1.4bn deal as Elliott buys in
Fidessa said both of the new approaches were at a premium to Temenos’ bid. One was five per cent higher with no further details provided on the second. But the firm warned of “no certainty that a formal offer from either will be forthcoming or as to the terms of any such offer”.
Temenos offer will not lapse as a result of the new approaches and a general meeting will be convened on or before 27 April.
The unnamed bidders will have to either confirm their bids or step away from Fidessa within a timeframe set by the Takeover Panel.
Activist Elliott Capital Advisors has built up a near-five per cent stake in Fidessa and is reported to have been agitating for change prior to the Temenos approach. The Financial Times has previously quoted unnamed sources indicating Elliott’s belief Fidessa was not being run as efficiently as equivalent businesses.
Read more: This FTSE 250 firm’s shares have rocketed 20 per cent – and here’s why