Shares in Austria's AMS drop 5% on report of renewed Osram bid

VIENNA (Reuters) - Shares in AMS AMS.S fell nearly 5% on Friday after Bloomberg reported the Austrian sensor maker was planning to discuss a renewed bid for Osram OSRn.DE following the failure of its first attempt.

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AMS’ supervisory board is scheduled to meet on Friday to explore the options, Bloomberg said, citing people familiar with the matter. Spokespeople for AMS and Osram declined to comment.

AMS’s 4.5 billion euro ($5 billion) takeover offer for Osram fell through earlier this month, but the group said it would still explore strategic options to pursue an acquisition of the German lighting group after securing a nearly 20% stake.

AMS had sweetened its bid to 41 euros a share after private equity groups Bain Capital and Advent said that they were prepared to trump the Austrian group’s original offer of 38.50 euros.

Osram Chief Executive Olaf Berlien said after the failed attempt he was open to a potential new offer from the Austrian group at the right terms.

AMS wants to form a global leader in sensors and lighting with a special focus on package solutions for self-driving cars.

To succeed with a potential new bid, AMS might have to increase the offer price a second time and lower the previous threshold of 62.5% needed to clinch the deal. It might also have to overcome considerable opposition from Osram labor representatives and management.

Osram chief Berlien had recommended the first bid as “financially attractive” to shareholders but did not tender his own shares.

AMS is due to report third-quarter results next Tuesday.

AMS shares fell as much as 4.9% to 42.60 Swiss francs. Osram stock was up 1.5% at 39.56 euros at 0728 GMT.

Reporting by Kirsti Knolle in Vienna and Thomas Seythal in Berlin; editing by Paul Carrel and Jane Merriman