AIM-listed diagnostics firm Axis-Shield has announced that while an increased offer of 470p-per-share from US life science company Alere still isn't enough, shareholders should accept.

Axis-Shield, which lashed out two weeks ago at the previous 460p-a-share offer claiming it undervalued the company, has now said that after talking with major shareholders, Alere's revised acceptance condition of 50% will most likely be met, "particularly in the light of their current shareholding of 29.9% of Axis-Shield's share capital".

Furthermore, the firm said that if the number of its shares held in public hands falls below the UK Listing Authority's listing eligibility threshold of a free float of 25% as a result of the offer, it will no longer be able to maintain its listing on the London Stock Exchange after the closure of the revised offer.

"In the event that Axis-Shield's Listing is cancelled, Axis-Shield shareholders who have not accepted the revised offer by its closure will own shares in an unlisted company controlled by Alere. In such circumstances, Axis-Shield shareholders would no longer be provided the protections available to them under the Listing Rules; the liquidity and marketability of Axis-Shield shares could be significantly adversely affected, and Axis-Shield shareholders' ability to dispose of their Axis-Shield shares following closure of the revised offer will be materially restricted."

The board now recommends shareholders to accept the offer, "as they will now be doing in respect of their own beneficial shareholdings," the group said.

BC

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