Intertek Recommends EQT Takeover at £9.4bn

London-listed laboratory testing company Intertek announced Wednesday that it would recommend shareholders accept a takeover proposal from Swedish private equity firm EQT, valuing the business at 9.4 billion pounds.

The board stated it remains confident in Intertek's standalone strategy but views the latest cash offer of 60 pounds per share, or 61.08 pounds including a final dividend, as delivering sufficient value. This marks the fourth approach from EQT, following rejections of prior proposals worth 58 pounds, 54 pounds and 51.50 pounds per share, the most recent valuing the company at 8.9 billion pounds.

Intertek shares rose 7 percent in morning trading after the announcement.

The prospective deal prompted Intertek to pause a strategic review launched on April 14, under which the company planned to sell or spin off its Energy and Infrastructure division from its core testing and assurance operations by mid-next year. The board noted it had received interest from potential buyers for that unit but now considers the EQT proposal a compelling alternative.

Shareholder pressure played a key role in shifting Intertek's stance. Activist investor Palliser Capital, holding less than 1...