Shares in intellectual property company Xenith (ASX: XIP) have risen 8.85 per cent this morning after suitor IPH (ASX: IPH) increased its takeover bid for the company to an implied value of $2.15 per share.
For months Xenith has stood by its proposed merger with QANTM Intellectual Property (ASX: QIP), but now it is giving the group until Thursday to match the terms of IPH's proposal.
The new bid is the result of "constructive discussions" between Xenith and IPH over key terms.
"We believe our Revised IPH Proposal to Xenith provides a great opportunity to bring together two high quality IP businesses and to draw on the strengths, skills and advantages of each member firm to realise opportunities for our people, our clients and our shareholders," says IPH managing director Dr Andrew Blattman.
Under the revised bid, Xenith shareholders would receive a standard consideration of $1.28 in cash and 0.1261 IPH shares for every Xenith share, or they will be able to choose a maximum scrip consideration of up to 100 per cent.
IPH claims this "mix and match" approach provides flexibility to cater for the preferences of individual shareholders, allowing investors in Xenith to participate in the growth, development and potential upside of a combined group that would be an ASX 200 company.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
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