By Jared Lynch
SHARES in tuberculosis testing company Cellestis have soared to their highest in two years after a German suitor raised its takeover offer by 7 per cent.
A shareholders' group, which initially opposed Qiagen's offer to acquire Cellestis, yesterday called the deal a miracle.
QuantiFERON technology has generated a less costly, more accurate way to diagnose tuberculosis.Credit: Reuters
Qiagen raised its bid by 25¢ to $3.80 a share - or $365 million cash - despite no competing offers.
The $3.80 would be made up of a special dividend of 7¢ a share from Cellestis and $3.73 from Qiagen.
Shareholders' group spokesman Gavin Ross, who speaks for 23 per cent of the vote through funds that he advises, said it was a good deal, although some more cash would have been nice.
''It's a bit of a miracle, given there were no competing bids, [and] an independent report by Deloitte valued it at $3.55 a share,'' Mr Ross said.
Cellestis shares jumped 63¢, more than 20 per cent, to $3.76 yesterday - their highest since August 2009.
Mr Ross said the group feared that if the deal collapsed, Cellestis's share price would plummet. The dynamics had changed on the share register since the takeover negotiations began. He said hedge funds had acquired about 11 per cent of the company and the group feared they would begin selling into the market, devaluing the stock, if the Qiagen offer evaporated.
Qiagen was adamant that the latest offer would be its last unless there was a superior rival bid.
The deal would give Qiagen exclusive access to Cellestis's QuantiFERON technology, which has generated a way to diagnose tuberculosis that is more accurate and less expensive than the tuberculin skin test.