Update 10:25pm: Adds Stratasys holder Donerail plans to vote against Stratasys buy of Desktop Metal.
Desktop Metal (NYSE:DM) dropped 5% as influential proxy service ISS beneficial that Stratasys (NASDAQ:SSYS) holders vote against a deal to buy the 3D printer market amid a rival Stratasys (SSYS) takeover supply from 3D Systems (NYSE:DDD).
It “is not clear that [the Desktop Metal merger] creates value for SSYS shareholders. DDD’s alternative offer to acquire [Stratasys], by contrast, presents a more convincing route to value creation for SSYS shareholders,” ISS stated in its suggestion, in accordance to an announcement from 3D Systems (DDD) on Thursday.
3D Systems (DDD) is trying to purchase Stratasys (SSYS), which might outcome within the termination of its deliberate $1.8 billion all-stock buy of Desktop Metal (DM). Stratasys (SSYS) and Desktop Metal (DM) shareholders will vote on the deal subsequent Thursday.
3D Systems (DDD) final Wednesday stated it submitted a binding supply for Stratasys (SSYS) after the 3D printer maker rejected its newest supply. The supply for Stratasys (SSYS) will expire on Oct. 5, giving the Stratasys board 5 enterprise days after the Desktop Metals (DM) vote on Sept. 28.
Separately, Desktop Metal (DM) stated that proxy firm ISS beneficial that its shareholders vote for its deliberate sale to Stratasys (SSYS), in accordance to an announcement earlier Thursday.
Last Thursday, Nano Dimension (NASDAQ:NNDM), Stratasys’ (SSYS) largest holder with a 14% stake, stated it plans to vote against the acquisition of Desktop Metal (DM). Nano Dimension withdrew its $25 per share particular tender supply for Stratasys (SSYS) after a number of rejections from the 3D printer maker. Nano Dimension additionally withdrew its director nominees for the Stratasys board.
Separately, Donerail Group, a big shareholder of Stratasys (SSYS), stated it plans to vote against the Desktop Metal (DM) deal.
The ISS report “spotlights what we believe to be grave and fundamental issues, ISS questioned critical matters that, we believe, speak to the board’s inability to act as fiduciaries and properly oversee Stratasys management,” Donerail Managing Member William Wyatt wrote in a letter Thursday to the Stratasys board.
Nano Dimension (NNDM) shares fell 5.5% on Thursday, whereas 3D Systems (DDD) dropped 4.4%. Stratasys (SSYS) ticked up 0.08%.