Solidion Technology Holds Firm on Below-Market Flux Power Bid
Solidion Technology refuses to raise its offer for Flux Power, citing dilutive financing needs, regulatory issues, and default risk.
Solidion Technology, Inc. (NASDAQ: STI) is standing by its below-market acquisition offer for Flux Power (NASDAQ: FLUX), dismissing calls to raise its bid following the Flux Power board's formal rejection of the proposal, according to a statement released from Dallas.
Solidion cited what it described as a deteriorating financial picture at Flux Power, including the target company's reliance on heavily dilutive financing arrangements, unresolved regulatory complications, and an elevated risk of debt default. The company argued those factors justify a discounted offer rather than a premium one.
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The standoff underscores a recurring tension in unsolicited takeover attempts: an acquirer's willingness to press a below-market bid when it believes the target's fundamentals are weaker than its trading price implies. Solidion's public posture effectively puts pressure on Flux Power shareholders to weigh management's rejection against the company's disclosed financial challenges.
Flux Power's board has not indicated any intention to re-engage with Solidion's offer. The situation leaves shareholders of both companies facing uncertainty about whether a negotiated deal is possible or whether Solidion will escalate its approach through other means, such as a direct appeal to Flux Power investors.
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