Alere may seek other targets if Axis escapes

shares in Dundee healthcare company Axis-Shield slumped 11 per cent after its suitor, US firm Alere, failed to raise its offer and warned it may pursue other targets if its takeover bid fails.

Ron Zwanziger, Alere’s chief executive, said: “We have maintained that we would remain financially disciplined and Alere is offering shareholders 460p in cash despite significant economic uncertainty and turmoil.

“In contrast, the board of Axis-Shield is asking shareholders to place their faith in delivering a strategic plan that contains significant execution, regulatory and market risk and uncertainty, the results of which will take years to realise.”

Massachusetts-based Alere cut the level of acceptances it wants for the £230 million offer to go through from 90 per cent of investors’ votes to 50 per cent.

It also said it would de-list the Scottish business if its 460p-a-share cash bid is taken up by shareholders with 75 per cent of voting rights, making it harder for other shareholders to sell their stakes.

Alere’s manoeuvres came on day 46 of its hostile takeover tussle, the final day for it to change the terms of its offer.

Shareholders with 1 per cent of Axis-Shield’s voting rights have so far accepted the offer, although Alere has built up its stake to 11.1 per cent by buying shares on the open market. The stalemate left shares in Axis-Shield 50p lower at 405p, well short of the takeover price.

Axis chief executive Ian Gilham said: “We’re disappointed Alere is sticking to its 460p price and position. We think it is an inadequate offer that doesn’t represent value to shareholders. I think that’s reflected in the fact they’ve collected only 1 per cent acceptance from shareholders.”

Gilham said Axis-Shield was on course to launch a lipid test – which measures one of the indicators of heart and lung disease – on its Afinion machine in Europe before the end of this year and to apply for permission to sell it in the US early next year. It would rival one of Alere’s products.

Julie Simmonds, an analyst at Collins Stewart, said: “If the offer is withdrawn, the shares are likely to fall back. We believe many non-holders would view this as a buying opportunity.”