Despite commitments from shareholders representing about 20 percent of TradeDoubler’s voting power, AOL is facing opposition to its planned acquisition of the Swedish online marketer. AOL’s offer of about $900 million would be an 8.6 percent premium per share over Friday’s close and 20 percent more than the three-month average. But, as Reuters reports, Swedish pension group Alecta, which says it has 10.1 percent of the shares, is rejecting the board’s advice on grounds that the bid undervalues the company. That’s just enough to keep AOL from closing on the deal; it set a condition requiring more than 90 percent approval. It was also enough to push the stock beyond the premium price during Monday trading.
One reason for the dissension: according to Reuters, broker SEB Enskilda told clients AOL’s offer values TradeDoubler at 27 times future earning while rivals trade at 30 times—“and synergies are not fully disclosed in the bid.” (They must not know synergy is a dirty word at Time Warner.)