Why Apollo’s fourth takeover bid for Wood Group falls short

Another day, another takeover bid – but this time the drama is at an all-time high. Apollo’s fourth attempt to acquire Wood Group has been making headlines, and not for the right reasons. As industry experts closely scrutinize every move of these two giants, we’ve got the inside scoop on why Apollo’s latest bid falls short. From financial considerations to market prospects, join us as we delve into the heart of this corporate clash.”

Apollo Global Management’s fourth takeover bid for Wood Group

Apollo Global Management has made a fourth takeover bid for Wood Group, but the offer falls short of what analysts say the company is worth.

Wood Group has been struggling in recent years, and Apollo’s offer of $3 billion is less than what many analysts believe the company is worth. The offer is also below Wood Group’s share price of $4.15, which means that shareholders are unlikely to accept it.

Apollo has been trying to take over Wood Group for several years, and this latest offer is the fourth time it has made a bid. The first three offers were rejected by Wood Group’s board, and it is likely that this one will be as well.

While Apollo may eventually succeed in taking over Wood Group, it seems clear that it will have to pay more than it has offered so far in order to do so.

Why the bid falls short

Wood Group has repeatedly rejected takeover bids from Apollo Global Management, and the latest offer is no different. Here’s why:

The offer falls short of what Wood Group shareholders were hoping for.

Apollo’s offer values the company at just over $5 billion, while Wood Group shares were trading at around $6.50 before the bid was announced. That means shareholders would only receive a small premium if they accepted the deal.

The offer also doesn’t reflect the true value of Wood Group’s assets. The company has a strong portfolio of businesses, including an engineering and construction business that is growing rapidly.

Apollo’s offer also fails to take into account the potential for future growth at Wood Group. The company is well-positioned to benefit from the continued growth of the oil and gas industry, and it has a strong track record of delivering shareholder value.

In light of these factors, it’s not surprising that shareholders have rejected Apollo’s latest offer.

What Apollo plans to do next

Apollo Global Management has made a fourth takeover bid for Wood Group, but the offer falls short of the British engineering firm’s expectations.

Wood Group has rejected Apollo’s latest offer of £2.2 billion ($2.9 billion), saying it “undervalues the company and its prospects.” The offer represents a 16% premium to Wood Group’s share price on February 7, the day before Apollo’s initial approach was made public.

Wood Group said in a statement that it “remains open to engaging” with Apollo “to discuss a possible offer at a price that the board would be willing to recommend to shareholders.” However, it seems unlikely that Apollo will be able to significantly increase its offer without the support of Wood Group’s major shareholders.

In the meantime, Wood Group is continuing with its own plans to spin off its oilfield services business and merge it with Amec Foster Wheeler. The combined company, which will be called John Wood Group plc, is expected to have an equity value of around £5 billion ($6.7 billion).

Conclusion

In conclusion, Apollo’s fourth takeover bid for Wood Group falls short because the offer is too low and fails to address the various concerns that shareholders have raised. The current offer does not even meet the minimum requirements of a takeover as outlined by regulators and therefore will almost certainly be rejected. It seems unlikely that this attempt at an acquisition will be successful without significant changes in pricing or structure, and so it remains to be seen whether Apollo can come up with a more suitable proposal later down the line.