CEVA board rejects takeover bid from DSV as ‘inadequate’

Yesterday, after Danish logistics firm DSV made an unsolicited, non-binding acquisition bid to CEVA Logistics AG, the CEVA board of directors unanimously rejected the offer of roughly US$28 per share in cash, saying that the bid – totaling about $1.5 billion – was “not in the best interest of the company and its shareholders.”

The CEVA board explained that DSV’s proposed offer “significantly undervalues” CEVA as a standalone company, and is particularly “inadequate” if it’s strategic partner, CMA CGM, is included. CMA CGM is the world’s third largest container shipping group, which holds a 24.99 percent stake in CEVA.

Since the rejection, CMA CGM has asked CEVA to modify its “stand-still agreement,” allowing the container shipping company to raise the ceiling on maximum holdings in CEVA from 24.99 percent to “up to one-third of the voting rights of CEVA Logistics.”

“All other obligations of CMA CGM, as made public in the IPO prospectus, remain in place, in particular the obligation of CMA CGM to tender its shares into a public tender offer by a third party if recommended by the Board of Directors unless CMA CGM launches a superior offer,” CEVA said in an official statement.

CEVA also said it will continue to work with CMA CGM to explore “measures to enhance performance in order to unlock CEVA Logistics’ full potential.” CEVA added that “a further announcement will be made in due course, if and when appropriate.”