Canon’s $1.1 billion bid for Oce NV may be in jeopardy after Hermes Focus Asset Management Ltd said in an open letter to to the Boards of Canon and Océ (PDF) that it’s “concerned that the offer terms do not represent a fair sharing of value between the shareholders of Canon and those of Océ” and they “won’t tender their shares.”
Bloomberg reports investors feel the Canon’s offer is too low:
Orbis Funds, with about 10 percent of Oce, in November rejected Canon’s bid. Investor group VEB, which represented 211 shareholders with about 0.003 percent of Oce at its last shareholders meeting, judged the bid too low.
Canon announced its plan to buy Oce in November for about $1.1 billion in cash. A premium of 70% over the closing share price of Friday 13 November 2009.