Shares of Coherent Inc. COHR, +2.44% rose 1.8% in premarket trading Wednesday, after the laser technology company announced an amended buyout agreement with Lumentum Holdings Inc. LITE, +3.35%, in which the value of the cash-and-stock deal increases to $6.6 billion from about $5.7 billion. The revised terms comes after II-VI Inc.’s IIVI, +2.94% unsolicited bid, valued at about $6.4 billion, or $260 a share, was deemed by Coherent earlier this week to be “superior” to the original deal with Lumentum. Under terms of the revised bid, Coherent shareholders will receive $175 in cash and 1.0109 Lumentum shares for each Coherent share they own. Based on Tuesday’s closing prices, that values Coherent’s stock at $261.62 each, a 7.0% premium. “By increasing the cash and lowering the stock in the consideration mix relative to our prior agreement, we are able to deliver more overall value to Coherent stockholders while at the same time increasing earnings accretion,” said Lumentum Chief Financial Officer Wajid Ali. He expects synergies of more than $190 million a year within three years after the closing, and expects the deal to add to adjusted earnings in the first year. Lumentum shares were little changed ahead of the open and II-VI’s stock was up 0.8%, while futures ES00, -0.12% for the S&P 500 SPX, +1.42% inched up less than 0.1%.
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