(Adds details, response from TVH, Lavendon; share movement)
Dec 14 European industrial equipment supplier
Loxam SAS said it reached an agreement on the terms
of its offer to buy UK's Lavendon Group Plc, valuing the
UK company at about 374 million pounds ($473.5 million).
Loxam is locked in a bidding war with Belgian industrial
equipment supplier TVH Group NV, which offered 205 pence per
share, valuing Lavendon at 348 million pounds.
"Lavendon directors unanimously intend to recommend Loxam's
offer," Loxam President Gerard Deprez said in a statement.
Loxam, which had made its interest in Lavendon known in late
November, offered 220 pence for each Lavendon share, just shy of
the stock's closing price of 220.50 pence on Tuesday.
Lavendon shares, which have gained about 59 percent since
Nov. 22 when TVH first publicly proposed to buy the company,
opened up 4.4 percent at 230.25 pence at 0801 GMT on the London
The bidding war intensified on Wednesday as TVH Group said
it was setting aside its 'no increase' statement on its offer
for Lavendon, bringing in the possibility of it raising the bid.
Both Loxam and TVH were eyeing Lavendon's market share in
equipment rental business in the UK and the Middle East.
Lavendon had initially rebuffed TVH's offer, citing concerns
over execution risk and potential disruption to its business.
TVH Group had said in November that its offer of 205 pence
per Lavendon share was final unless Loxam or a third company
makes a bid for Lavendon.
($1 = 0.7898 pounds)
(Reporting by Vidya L Nathan in Bengaluru, Editing by Sunil
Nair and Gopakumar Warrier)