Getty Images Holdings Inc. rebuffed Trillium Capital’s almost $4 billion takeover bid, saying the activist investor hasn’t provided any evidence that its proposal, valuing the shares at nearly double the pre-offer price, is “sufficiently credible.”
(Bloomberg) — Getty Images Holdings Inc. rebuffed Trillium Capital’s almost $4 billion takeover bid, saying the activist investor hasn’t provided any evidence that its proposal, valuing the shares at nearly double the pre-offer price, is “sufficiently credible.”
Seattle-based Getty, which holds the rights to millions of photographs and other works from over 516,000 contributors, fell as much as 11% in post market trading.
Trillium unveiled its $10-a-share cash bid Monday after earlier this month requesting a seat on the board and asking the company to seek a buyer. The stock closed at $5.06 on April 21, the last trading day before the offer was announced. Getty shares rose as much as 62% the day of the announcement.
“Trillium Capital LLC has not provided the Board of Getty Images or its advisors with any evidence that it, its managing partner or its non-binding, highly conditional proposal are sufficiently credible to warrant engagement by the Board of Getty Images,” the company said in a statement Tuesday.
The board “believes the current management team and company strategy represent the best path forward to maximize the long-term shareholder value.”
Trillium, which has said it owns 500,000 Getty shares, signaled its proposal is contingent upon a number of things, including immediate engagement by the Getty board. The investor said it may consider permitting shareholders who own more than 80% of Getty stock to roll some or all of their shares into the transaction. Trillium Managing Partner Scott Murray would join the board and become its chairman.
Murray didn’t immediately respond to an email seeking comment Tuesday.
The Getty family and Koch Industries Inc. are the two largest shareholders in the company, controlling 65% of shares, according to data compiled by Bloomberg.
–With assistance from Christopher Palmeri.
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