Sweden's EQT tables $12.7 billion proposal to take UK's Intertek private (updated)

Intertek

12/05/2026 07:53

Intertek says reviewing EQT's final bid at 60 pounds per share

Investors urge Intertek to engage with EQT over proposal

Intertek shares rise as much as 9%

Adds statement from Lost Coast Capital in paragraphs 7-8, details on investors in 5 and 8, analyst comment in 15; updates shares in 3, adds graphics

By Prerna Bedi and Yamini Kalia

May 12 (Reuters) - Swedish private equity group EQT AB EQTAB.ST proposed a final 9.4 billion pound ($12.7 billion) takeover bid for Britain's Intertek ITRK.L on Tuesday, after the product testing firm rejected three previous approaches citing undervaluation.

If EQT's bid succeeds, that would make it Britain's second‑largest private equity takeover on record, trailing only KKR's KKR.N 11.1-billion-pound acquisition of Boots in 2007, according to M&A data and intelligence platform Mergermarket.

London-listed Intertek said it was reviewing the sweetened fourth proposal. Its shares gained as much as 9% to 54.3 pounds by 1324 GMT but are still lagging the proposed offer price and their October 2020 peak of roughly 65 pounds.

EQT said its latest proposal, offering 60 pounds per share in cash and a possible 1.1‑pound annual dividend, delivers "certain and accelerated cash value" superior to Intertek's standalone prospects.

It had previously proposed 51.5 pounds, 54 pounds and 58 pounds apiece.

INVESTOR PRESSURE

Intertek has repeatedly backed a strategic review, which could see the company split into two businesses - one for energy and infrastructure and another for testing and assurance - over EQT's proposals. Several investors, however, are urging it to engage with EQT.

Lost Coast Collective, an investment firm founded and run by Nelson Peltz's son Matthew, on Tuesday echoed EQT's argument and said neither the "cold shoulder" nor Intertek's standalone strategy was now prudent.

"While the Board and management may have confidence in a partial sale and an operational fix, the market clearly does not believe in the team's ability to execute," Matthew Peltz wrote in a public letter.

Lost Coast owns about 1.2% of Intertek and joins activist investors PrimeStone Capital and Palliser Capital in calling out Intertek for its lack of engagement with EQT.

In its own letter on Tuesday, PrimeStone called upon Intertek to execute its fiduciary duty.

Palliser did not immediately respond to a request for comment on EQT's latest proposal.

OFFER DEADLINE LOOMS

Intertek launched its review a day after it received EQT's first bid in early April and has argued that a takeover carries high execution risks. It said it had received "encouraging levels" of interest for its energy and infrastructure unit.

Many analysts viewed the move as defensive, but some have said that proposals from other parties were also possible, without naming any.

Under British takeover rules, if Intertek rejects EQT's final bid, the firm would be barred from participating in a takeover for at least six months, unless in special situations. EQT has until Thursday to make a formal offer or walk away.

Panmure Liberum analyst Joe Brent said there is a "good chance" that Intertek will accept the latest offer, noting that a growing number of short‑term investors will be keen to secure a quick profit rather than risk shares falling back to pre‑bid levels.

($1 = 0.7377 pounds)

The UK's largest take-private deals https://reut.rs/4tw64RB

Share price moves at UK's Intertek https://reut.rs/4uENtE3

 (Reporting by Prerna Bedi, Yamini Kalia, Ankita Bora and Tuhina in Bengaluru; Writing by Pushkala Aripaka; Editing by Subhranshu Sahu, Keith Weir and Joe Bavier)

 ((Yamini.Kalia@thomsonreuters.com))