According to reports, a hedge fund run by a billionaire investor is blocking GE’s (NYSE:GE) $1.4 billion takeover bid for 3D printing company SLM Solutions (ETR:AM3D).
The hedge fund manager Paul Singer, valued at an estimated $2.2 billion, according to Forbes is well known for his activist strategy. Previously Singer has bought defaulted debt from Latin American countries and then entered in a round of negotiations to extract money from both Peru and Argentina.
With more than a 20% holding in Germany’s SLM Solutions Singer may be deploying a similar strategy. In a statement released today Singer’s fund wrote they believe, “that GE’s offer is not in the best interests of SLM shareholders.”
SLM trading above GE premium
Singers buying activity since the GE bid announcement in September has boosted SLM Solutions’ stock price above the offer, as 3DPI previously reported. The stock last traded at 39.49 EURO ($46.16). This is marginally above the 38 EURO offered under the terms of the September takeover approach.
Financial news organisation, Bloomberg, report that Singer has previously refused to sell his holding in Axis Communications AB. This move prevented Canon Inc. from acquiring the 87% it required to takeover. The strategy was also evident when another investment company, EQT Partners AB made a move to buy out Swedish software company Industrial & Financial Systems IFS AB, Singers move allowed his fund to command a 9% premium compared to shareholders who accepted the first offer.
Earlier this week GE had already extended the terms of their bid for Swedish 3D printer manufacturer Arcam AB (STO:ARCM), giving investors until the 1st of November to accept the offer. Previously the 14th October was set as the date for shareholders to accept terms.
Hedge funds target 3D printing industry
As the 3D printing industry continues to mature hedge funds have become increasingly invested, seeking opportunities to enrich their investors. As we reported last week Soroban Capital Partners, a $16 billion hedge fund, has doubled its stake in 3D software maker Autodesk (NASDAQ:ADSK). This move has generated speculation that from a position of influence the fund may seek to trim costs and reap short term benefits at the expense of the long term potential of the Californian company.
3D printing industry will bring you further news as the story develops.