French financial IT firm Linedata Services has raised its bid for Canadian investment technology house Financial Models Company to C$166 million and is calling on the law courts to block a rival offer from FMC president and chief executive Stamos Katotakis.
Linedata has upped its bid by 15% to $14.50 a share - compared with $13 earlier - for 70% of the stock, and 1.766 Linedata shares (1.97 previously) for each of the remaining 30% of FMC shares. The offer values FMC stock at C$14.64 per share, a 78% premium to the firm's closing price of C$8.25 on the Toronto Stock Exchange at the time of Linedata's original offer in December.
Linedata is bidding against a competing offer by Katotakis who is using a pre-existing shareholder's agreement to buy a 42% stake in the firm from fellow shareholders William Waters and BoNY Capital at an agreed price of C$12.20 per share. Both the FMC board and Linedata have agreed to challenge the validity of Katotakis' offer in a court case scheduled for hearing on 31 January. The FMC board has also raised the case with the Ontario Securities Commission.
Linedata's new offer will remain on the table until 11 February. In return FMC has agreed a new $6 million break clause with the French firm if the deal is terminated due to a superior offer, or $3.5 million if the Katotakis bid is accepted.