Home Market News Desktop Metal falls as proxy firm advises Stratasy holders to vote against deal (update)

Desktop Metal falls as proxy firm advises Stratasy holders to vote against deal (update)

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Desktop Metal falls as proxy firm advises Stratasy holders to vote against deal (update)
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Update 10:25pm: Stratasys holder Donerail plans to vote against Stratasys’ purchase of Desktop Metal.

Shares of Desktop Metal (NYSE:DM) dropped 5% after influential proxy firm ISS advised Stratasys (NASDAQ:SSYS) shareholders to vote against the deal to acquire the 3D printer market. This comes amid a rival takeover offer from 3D Systems (NYSE:DDD).

According to a statement from 3D Systems, ISS stated that it is not clear if the merger of Desktop Metal and Stratasys creates value for Stratasys shareholders. ISS believes that 3D Systems’ alternative offer for Stratasys presents a more convincing route to value creation.

If the acquisition of Stratasys by 3D Systems is successful, the planned $1.8 billion all-stock purchase of Desktop Metal by Stratasys will be terminated. Shareholders of both Stratasys and Desktop Metal are scheduled to vote on the deal next Thursday.

3D Systems made a binding offer to acquire Stratasys last Wednesday after the 3D printer maker rejected its latest offer. The offer for Stratasys will expire on October 5. Stratasys’ board will have five business days after the vote on September 28 to consider the offer.

It is worth noting that ISS recommended that shareholders of Desktop Metal vote for the planned sale to Stratasys, according to an earlier statement on Thursday.

Last Thursday, Nano Dimension (NASDAQ:NNDM), Stratasys’ largest shareholder with a 14% stake, announced its plans to vote against the purchase of Desktop Metal and withdrew its special tender offer for Stratasys. Nano Dimension also withdrew its director nominees for the Stratasys board.

Another major shareholder of Stratasys, Donerail Group, revealed its intention to vote against the Desktop Metal deal as well.

Following this news, shares of Nano Dimension fell 5.5% on Thursday, while 3D Systems dropped 4.4% and Stratasys saw a slight increase of 0.08%.