AMS offers a counter-bid 10% above the opponent’s to woo Osram

Getting a step ahead in a bidding war with the investment firm, Bain Capital and Carlyle (CG.O), Austrian sensor maker AMS (AMS.S) puts a 4.3 billion euro($4.8 billion) offer to take over German lighting group Osram (OSRn.DE). AMS’s counter-bid, made public on Tuesday, is believed to intensify the bidding war between the two firms.

In order to increase its chances of winning the bid, AMS made its offer 10% above the price offered by the private equity firm. AMS offered the shareholders a 38.50 euro ($42.90) per share of Osram to consider, once the bid gets approved by the German finance regulator Bafin. Bain Capital and Carlyle offered the shareholders 35 euros per share.

In order to counter BCC’s bid, the Austrian sensor maker also allowed the shareholders, who opted for BCC’s share price, to withdraw and retender. Osram has roughly a month’s time (from September 3 until October 1) to review and accept the offer. It automatically extends the time period to revert over the offer of the investor duo.

AMS is known for providing sensors to Apple for its face recognition technology, which is also the company’s largest revenue earning operation. The Austrian company is bidding strongly for Germany’s Osram as it wants to now move into the self-driving vehicle industry and wants to use Osram’s technology in building the best sensors and photonics in the world.

“Our offer and the combination of Osram and AMS represents a better option to all stakeholders than the private equity proposal,” AMS Chief Executive Alexander Everke said.

Analysts agreed that AMS‘s plan of combining the two companies’ technologies to develop lidar systems, is a good plan. Lidar system is a system in which sensors use laser light techniques to render precise images of the objects around a vehicle. However, the only downside to the plan is the time as it might take several years until the systems start earning significant revenues.

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