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Wednesday, February 27, 2019

Stifel says ‘hard not to like’ Merck KGaA counter offer for Versum Materials

After Versum Materials (VSM) received a counter offer acquisition bid from Merck KGaA (MKGAY) of $48 per share in cash, Stifel analyst Patrick Ho said its “hard not to like” this “very attractive” bid. While Ho still believes the fit would be better with Entegris (ENTG), he struggles to see Entegris making a counter all cash bid for Versum, he stated. He expects Versum to take the Merck KGaA offer as it currently stands versus the Entegris offer, though Entegris could “surprise” with a higher counter offer. If so, Ho thinks it would have to be at least a cash/stock deal and not a stock swap as currently structured. He maintains a Buy rating and $46 price target on Versum shares.

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