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Lumentum Holdings Raises Buyout Offer for Coherent; II-VI Apparently Follows Suit

By Eric Volkman - Mar 18, 2021 at 11:45AM

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II-VI's bid was reportedly the higher of the two, at a total of roughly $285 per share.

New shots were fired Wednesday in the increasingly contentious takeover battle for Coherent (COHR). The two leading contenders to acquire the laser technology company, Lumentum Holdings (LITE -6.85%) and II-VI (IIVI 2.54%) both submitted fresh bids to gain the upper hand.

The earlier of the two was Lumentum's. The company increased its offer to $220 per share in cash and 0.61 of a share of its own stock per Coherent share, for a total of roughly $275 per share. It added that private equity firm Silver Lake Capital will also make a $1 billion equity investment in the combined company.

Several hands holding up bills of U.S. currency.

Image source: Getty Images.

Coherent reacted to Lumentum's new offer in a press release, writing that its board of directors will "carefully review" it, in consultation with its legal and financial advisors.

That evening, II-VI apparently also submitted a new offer. The Wall Street Journal reported late Wednesday evening that II-VI had also sweetened its bid. Citing "people familiar with the matter," the report indicates that II-VI upped its offer $220 per share (from the previous $195). Like Lumentum, II-VI is also offering stock, and while the Journal didn't specify the mix between cash and stock, it did write that the total bid comes to around $285 per share.

The Coherent takeover saga began in mid-January, when the company agreed to be acquired by Lumentum, for $100 per share in cash and just under 1.19 shares of Lumentum stock for every share of Coherent. But II-VI and MKS Instruments (MKSI -1.48%) soon stepped in with competing offers, and the battle was on.

It seems that MKS did not submit a new bid of its own on Wednesday; its last known one was made on March 8, for a total of $250 per share in cash and stock.

It's still to be determined how much longer this bidding war will continue. 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends II-VI and Lumentum Holdings. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Coherent, Inc. Stock Quote
Coherent, Inc.
COHR
II-VI Incorporated Stock Quote
II-VI Incorporated
IIVI
$54.60 (2.54%) $1.35
MKS Instruments, Inc. Stock Quote
MKS Instruments, Inc.
MKSI
$117.09 (-1.48%) $-1.76
Lumentum Holdings Inc. Stock Quote
Lumentum Holdings Inc.
LITE
$89.60 (-6.85%) $-6.59

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