EQT’s latest GBP 60 per share offer for Intertek continues to undervalue the company, according to Hugh Yarrow, co-founder and portfolio manager at asset manager Evenlode.

There is still scope for an offer increase or rival takeover bid for London-listed Intertek, Yarrow told this news service.

Yarrow previously backed the board’s decision to reject three earlier takeover offers from EQT, as reported.

Evenlode has a 1.4% shareholding in Intertek.

“The improved offer doesn’t fundamentally change our view on Intertek,“ Yarrow said.

“We think intrinsic value is above the offer price, and that’s not including a takeover premium.

“It’s possible that EQT will raise its offer further but that would depend upon conversations with shareholders and views around the price they’ll need to offer to get a deal through.

“There’s also always the outside possibility of a rival bid.”

EQT declared its latest offer “final” meaning it is unable to improve the bid unless Intertek receives a rival bid or the UK Takeover Panel provides its consent.

Intertek reportedly held discussions about a possible combination with Bureau Veritas in 2024 but there has so far been no sign of rival interest since news of EQT’s interest emerged last month.

Intertek’s board said on Wednesday last week (13 May) it was “minded to recommend” a GBP 60 per share offer from private equity investor EQT, which values its equity at around GBP 9.4bn. Shareholders in Intertek will also receive a previously-proposed dividend of 107.7 pence per share.

Shares in Intertek were trading at GBP 55.30 in this afternoon’s trading session, down 0.4%.

EQT declined to comment. Intertek did not respond to a request for comment.