An Ingenico SA board member reportedly is contending that a takeover bid for the French point of sale terminal maker could be renewed.
Ingenico did not respond to a query from a reporter, but comments from the board member, Allan Green, were included in Reuters news service reports from France.
Ingenico rejected a $1.9 billion unsolicited bid Dec. 19. The buyer was not identified, though Reuters said it was Danaher Corp. of Washington. Danaher did not respond to requests to comment or confirm whether it made a bid.
According to Reuters, Green told BFM radio Dec. 21 that the potential buyer's interest is "real and is motivated by a desire to develop Ingenico more quickly."
Ingenico reasserted Dec. 21 that the original $1.9 billion bid was not binding. Ingenico's stock was down 4% at the end of trading on Dec. 21 at $34.54 per share.
A bid for Ingenico is not surprising, said Robert Dodd, an analyst at Morgan Keegan & Co. Inc. of Memphis, Tenn.
Ingenico's reaction to the bid appears to be a classic case of disagreement over price, Dodd said. "That's not to say the deal, which didn't turn hostile, couldn't come back."
Large point of sale device companies are attractive acquisition targets, Dodd said. Like its largest rival, VeriFone Systems Inc. of San Jose, Calif., Ingenico is well positioned in the payments industry.
Ingenico has a large market share in Western Europe and its international sales are growing, Dodd said. But Ingenico may be more attractive, he said.
Ingenico reported revenue of $953.6 million for 2009, to VeriFone's $845 million. VeriFone posted revenue of $1 billion for fiscal 2010. Ingenico has not yet reported its 2010 results.
A combined VeriFone-Hypercom could become a takeover target, Dodd said, because Hypercom is strong in Western Europe.
