By Sabela Ojea
The Donerail Group has urged the board of Stratasys, a leading three-dimensional printing company, to engage with 3D Systems regarding its upgraded takeover offer. The hedge fund, which holds a 2.3% ownership interest in Stratasys, believes that the 3D Systems agreement has the potential to lead to a superior proposal compared to the Desktop Metal transaction.
Stratasys confirmed on Thursday that it is reviewing a new proposal from 3D Systems. The revised cash and stock offer from 3D Systems implies a value of $24.07 per share, representing a 15% increase on the previous offer made on May 30.
Stratasys’ largest shareholder, Nano Dimension, has also increased its offer to acquire the company’s ordinary shares. The new offer of $24 per share in cash is up from a prior offer of $20.05. Both offers provide a significant 70% premium to Stratasys’ closing share price of $14.26 on May 25, which was the first trading day following the announcement of the merger with Desktop Metal Inc.
The Donerail Group emphasizes the importance of these developments and encourages the Stratasys board to swiftly engage with interested parties in order to negotiate the best possible deal for the shareholders. It suggests that the inferior Desktop Metal deal should be set aside in favor of exploring more promising options.
Shares of Stratasys rose 0.5% to $20.48 in after-hours trading.