April 23 (Reuters) - Matt Peltz, the son of activist investor Nelson Peltz, has built a stake in British product testing firm Intertek, the Financial Times reported on Thursday. (Reporting by Shivani
Nelson Peltz’s son builds over 1% stake in UK's Intertek amid EQT bid
Matt Peltz’s Investment and the Intertek-EQT Takeover Saga
Background: Stake Acquisition and Public Filing
April 23 (Reuters) - Matt Peltz, the son of activist investor Nelson Peltz, has built a more than 1% stake, worth over 87 million pounds ($117.4 million), in British product-testing firm Intertek through his hedge fund, according to a public filing.
The filing by hedge fund Lost Coast Collective, disclosed earlier this week, comes amid takeover interest in the London-listed company from Swedish private equity group EQT AB.
EQT’s Takeover Bid and Intertek’s Response
Details of the EQT Offer
EQT sweetened its offer for Intertek to 54 pounds a share in cash on Wednesday, after the company rejected an earlier 51.50 pounds a share bid on grounds that it undervalued the firm. The new offer values the company at 8.3 billion pounds, according to Reuters' calculations.
Intertek and EQT did not immediately respond to Reuters' request for comment.
Lost Coast Collective’s Position
Lost Coast told the Financial Times on Thursday that it commended Intertek's board and management for rejecting the initial offer, calling it "way below intrinsic value," but declined to comment on EQT’s improved bid.
Reuters could not immediately reach the hedge fund for comment.
Significance of the Investment
First Public Position for Lost Coast Collective
The fund's investment is the first public position it has disclosed since Peltz launched the firm last year, FT, which first reported the stake, said, citing people familiar with the matter.
Peltz’s Engagement with Intertek
Peltz began accumulating Intertek's shares last year and has already had discussions with its management, urging a potential break-up, according to FT.
Potential Break-up of Intertek
Company’s Strategic Considerations
Last week, Intertek announced that it was considering splitting into separate energy/infrastructure and testing/assurance businesses, a move that analysts say is "defensive", following the disclosure of EQT's initial takeover bid.
Market Context
($1 = 0.7412 pounds)
(Reporting by Shivani Tanna in Bengaluru; Editing by Harikrishnan Nair and Sonia Cheema)
