Merger of Metris

Metris is a Belgian developer of 3D hardware and software inspection systems for automotive and aerospace industries. Metris was founded in 1995 as a spin-off of the catholic university in Leuven. It announced its IPO on Eurolis by Euronext Brussel on the end of 2006.
Because of the financial crisis and the following recession in aerospace and automotive sectors in 2008, Metris couldn’t maintain revenues and control debt in the downturn.
Its net debt rose to 87 million euros. The shares fall to about 1 euro. Rumours about a merger made rise Metris shares to 2,66 Euros.

After Euronext Brussels suspended trading of its shares, on Wednesday 27, 2009 , the Chief Executive of Metris let know he was in merger talks with Japan’s Nikon and with Japanese precision measurement specialist Mitutoyo.

In June 3, Metris said it was set to accept takeover offer from Nikon. The conditional cash offer for all its outstanding shares would come to 5,5 Euros per share.
Annalists considered the takeover as positive for Metris and its stakeholders and advised investors to accept the offer.


Comment

The takeover price of Metris shares amounts to the double of its last closing price on May 26.
It’s evident that investors who bought shares at its lowest price can sell at a considerable profit.
But at the begin of its stock market quotation end 2006, Metris’s share price amounted to 12 Euros and after strengthening its international market position, the share price rose to 16,5 Euros. That means that many private investors have to sell at a loss and proves that shares are a very risk bearing investment.
Annalists agree that Nikon is the great winner of the whole transaction.

Source: http://www.forbes.com/feeds/afx/2009/06/03/afx6499557.html

Elise Van Praet
3FV1