KEY POINTS:
US medical giant Henry Schein has extended its takeover bid for Software of Excellence as it seeks to convince shareholders that the volatility of equity markets makes the offer more compelling.
However, the decline in the value of the New Zealand dollar could offset that argument, says one analyst.
Henry Schein said it had acceptances from 69.1 per cent of shareholders in the Auckland-based dental software firm as of Tuesday. It has given shareholders until September 29 - the final deadline under the takeovers code unless it declares the bid unconditional - to take up its offer, which needs 90 per cent acceptance to succeed.
In an attempt to convince remaining shareholders of the offer's merits, Henry Schein senior vice-president Michael Ettinger said that since the company launched its bid at the start of May, share markets had weakened, and the Software of Excellence share price had fallen to $2.48 - 8 per cent below Henry Schein's $2.70 offer price. Ettinger said the offer was a 27 per cent premium on the company's closing share price just before the announcement of the takeover, and the share price was likely to fall if the bid failed. SOE shares closed unchanged at $2.48.
