Tata Motors Increases Iveco Acquisition Offer Amid Shareholder Resistance

Tata Motors has increased its acquisition offer for Iveco Group NV by 2% to €14.40 per share, designating the adjustment as its final price. This revision follows public opposition from activist investors who argued the original valuation failed to account for transaction delays and synergy potential. The deal is currently valued at approximately €3.88 billion.

Despite the price increase, the tender offer has secured only 28.4% of shares, with the 26 October deadline approaching. Three major institutional investors—Davidson Kempner, Syquant Capital, and Petrus Advisers—collectively holding 20.4% of common shares, have yet to tender their positions. Their participation is critical to meeting the acquisition’s high acceptance thresholds.

The transaction requires a 95% acceptance rate, which may decrease to 80% if shareholders approve a specific resolution at an extraordinary general meeting on 16 October. While Iveco’s largest shareholder, Exor, has tendered its stake, the holdout of other institutional investors creates significant execution risk. Failure to reach the required threshold by the deadline could jeopardize the acquisition.