Crowdfunding
Qiagen stock collapses after take-over talks fall apart
The sale of the biotechnology group Qiagen from Hilden in North Rhine-Westphalia is off the table for the time being. After fruitless talks with interested parties, the Executive Board and the Supervisory Board decided that the group with its 5,200 employees should remain independent. The news triggered a dramatic drop in the price of Qiagen shares.
![This picture show a laptop with a bunch of date.](https://born2invest.com/wp-content/uploads/2019/12/quiagen-share-820x550.jpg)
Qiagen stated that the offer of the interested buyers were not convincing enough for the talk-over talks to proceed. Supervisory Board Chairman Hakan Björklund emphasized that the company could also thrive on its own. “We have a strong and differentiated portfolio of molecular testing solutions that offer the opportunity for significant growth.”
Qiagen NV lost about one-fifth of its market value on Thursday, December 26, after the Dutch biotechnology company said earlier this week that it would focus on its stand-alone business strategy, rejecting possible buyers. The company’s shares on Thursday, December 26, fell 21% to $32.91, reaching a low of $30.23 during the day.
Stay informed about the latest biotech advances with Born2Invest. Our companion app includes news updates of finance headlines from business and investing in cannabis, Africa, fin-tech, and more.
Qiagen take-over discussions
In November, Qiagen had announced take-over talks. The U.S. technology group Thermo Fisher Scientific was considered as a possible buyer. But the subject of sale has now been put on the back burner.
The genetic diagnostics and biotech group started in 1984 as a spin-off of the University of Düsseldorf. In 2018, the company achieved annual sales of $1.67 billion (€1.5 billion). For legal reasons, the diagnostics specialist has its headquarters with only a few employees in Venlo in the Netherlands. The largest location is Hilden near Düsseldorf with 1,300 employees. Qiagen produces instruments for laboratories and consumables for DNA tests, including pipette tips and sample tubes.
The cancellation of the MDAX company’s take-over caused the share price to collapse massively on Friday, December 27. Qiagen shares -17.93% and were almost 20% weaker on Friday, December 27, before the stock exchange opened and were trading below the $33.43 (€30) mark. On Wall Street, they had temporarily plummeted by a good 25% the day before.
In October and November, takeover hopes caused the share price to skyrocket from under $25.63 (€23) at its peak to over $43.46 (€39). In November, the company announced that it had spoken with several interested parties.
According to analyst Sven Kürten of DZ Bank, the last word in this matter must not yet be spoken. “We believe that the bidders are still interested and could submit an offer for Qiagen at some point in the future, with or without the approval of the Qiagen Management Board and Supervisory Board,” the expert wrote in a commentary. Whether a hostile takeover bid could work is uncertain however and this may simply depress the stock price further.
__
(Featured image by Austin Distel via Unsplash)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in finanztreff.de, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
![](https://born2invest.com/wp-content/uploads/2018/11/logo-slogan.png)
-
Impact Investing1 week ago
IVPC Power 10 Receives 14.7M financing from Banco BPM for the Aquilonia and Bisaccia Wind Farm
-
Africa1 day ago
Senegal’s Ambitious 100,000 Social Housing Program: A Path to Restructuring and Growth
-
Business5 days ago
$200 Daily Advances in the Price of Gold?
-
Impact Investing2 weeks ago
Kilometro Verde Aims to Grow by Opening the Capital to a Synergic Partner and through Acquisitions