Resumen de Weir supports merger despite Metso rejection
Weir's proposal offered a 5 to 10% premium over Metso's recent share price, and the merger would, according to Weir's plans, have a combined board staffed by both Metso and Weir executives.
Under the terms of the offer, Weir proposed an all-share merger under which Metso shareholders would receive 0.8400 Weir shares per Metso share held, which would result in around 37% ownership by Metso shareholders of the combined company.
According to [Nick Wilson], one benefit Weir could bring to Metso is the improvement of the Finnish company's share of after-market services, as Weir captures 90% of after-market service and replacement business on the equipment it sells, while Metso's after-market share is much lower at 50%.
