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Solutions being discussed for the deadlock between Candover and major Stork shareholder LME/Marel include an agreement to buy Stork Food Systems and a joint bid, it is understood. It is thought that a likely solution is for LME/Marel to acquire Food Systems but every option is open and other solutions are understood to be under discussion.
Candover this week extended the deadline for its offer for the Netherlands-listed industrial group, Stork, to 18 September to “enable further discussions with LME/Marel and Stork”.
It is believed that, from LME/Marel’s point of view, a compromise would have to involve Candover paying more and giving up Food Systems. Meanwhile, LME/Marel would have to pay a very good price for Food Systems, it was said.
It is thought that LME/Marel is unlikely to settle on a deal to buy Food Systems after the transaction is completed because it wants everything on the table now, although it is thought this option has been discussed.
Since this is the first time formal discussions have taken place, the parties are taking it as a positive sign for compromise, it is understood.
LME/Marel is understood to have the option of launching its own bid later on and has not ruled out increasing its 43% stake further.
Discussions are believed to be at a vulnerable stage but the parties are hoping to reach some kind of conclusion one way or the other by the 18 September closing date. It is understood that the parties agreed this two-week extension as the timeframe for talks.
A Candover spokesperson said the private equity firm remains committed and is positive the parties can find a solution. He declined to comment on what solutions are being discussed. Stork could not be reached for comment.
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