SSYS - Stratasys holder urges company to engage with 3D Systems on its takeover offer

2023-06-29 14:06:13 ET

A Stratasys ( NASDAQ: SSYS ) shareholder is urging the 3D printer maker to negotiate a deal with 3D Systems ( NYSE: DDD ) and terminate its planned merger with Desktop Metal ( NYSE: DM ).

The Donerail Group, which has an ownership interest of 2.3% in Stratasys ( SSYS ), wants the company to immediately deem 3D Systems ( DDD ) proposed offer as reasonably likely to lead to a superior proposal, according to a letter the activist investor wrote to the SSYS board on Thursday.

"After 2 years of rebuffing willing suitors, we implore the Board to be especially mindful of its fiduciary obligations to shareholders, rather than have an inflated view of an execution story wrought with challenges," Donerail Group Managing Partner William Wyatt wrote in the letter. "The correct answer is clear in our view."

The shareholder letter comes after 3D Systems ( DDD ) on Tuesday submitted a revised proposal to Stratasys' ( SSYS ) board to combine the two companies in a cash and stock deal. The deal would convert each Stratasys ordinary share into $7.50 in cash and 1.3223 newly issued shares of 3D common stock.

3D System s increased its bid for Stratasys after the rival 3D printer maker said the offer wasn't superior to its planned merger with Desktop Metal ( DM ).

On Tuesday, Nano Dimension ( NASDAQ: NNDM ) boosted its special tender offer for Stratasys to $20.05 a share from an earlier offer of $18.

Stratasys ( SSYS ) shares rose 1.8% on Thursday, while 3D Systems ( DDD ) shares gained 1.4%.

More on 3D Systems, Desktop Metal and Nano Dimension

• Desktop Metal: High Ambitions Despite Macroeconomic Pressures
• 3D Systems: Poor Profitability On The Horizon, Hold
• Nano Dimension: Interesting Asymmetric Risk/Reward Scenario

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