FRANKFURT (Reuters) - Active Ownership Capital (AOC), the third-largest shareholder of German renewable firm PNE AG (PNEGn.DE), does not plan to accept a standing 4.00 euro per share bid from a Morgan Stanley (MS.N) controlled fund, PNE said on Monday.
AOC “does not intend to accept the offer”, PNE said in its reasoned opinion on the offer, in which it comes out in favour of the bid, which runs until Nov. 28, and recommends shareholders accept it.
PNE said its management and supervisory board saw the bid as an appropriate reflection of “the value of the company at the present time – i.e. also taking into account the current overall regulatory, geopolitical and macro-economic situation”.
AOC, which holds a 5.07% stake in PNE, was not immediately available for comment. The investor had brought about a strategic overhaul at German generic drugmaker Stada STAGn.DE that culminated in the group’s later takeover.
The decision not to tender comes as resistance against the bid from Morgan Stanley Infrastructure Partners is gathering momentum, with top 10 shareholder ENKRAFT having long opposed the 306 million euro bid.
“The reasoned opinion by the management and supervisory board of PNE lacks any substantive detail and level of necessary professional duty of care,” ENKRAFT said in a preliminary assessment of the reasoned opinion seen by Reuters.
As of Nov. 5, Morgan Stanley had secured a stake in PNE of 16.83%. Shares in PNE traded 0.3% lower at 3.99 euros apiece at 1324 GMT.
Reporting by Christoph Steitz; editing by Thomas Seythal and Michelle Martin