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Will Wincor shareholders nix Diebold takeover?

Diebold must secure 75 percent of its German rival's shares by midnight March 22. As of March 21, the American ATM-maker was only a little more than halfway there.

March 22, 2016

The planned business combination of Diebold Inc. and Wincor Nixdorf AG hangs in the balance today as the companies watch the clock tick down to the zero hour.

Under the terms of the combination agreement, Diebold must secure 75 percent of its German rival's shares by midnight Tuesday, March 22. As of Monday, the American ATM-maker was only a little more than halfway to that goal.

But all is not said and done quite yet: In Germany, it is not unusual for actively managed funds to tender their shares on the very last day of an offer period, according to a report by Dow Jones. And passively managed funds wait until the minimum has been met before tendering their shares.

A report by Reuters on March 10 said that Diebold Inc. will not increase its $1.8 billion offer for Wincor Nixdorf and will not lower the acceptance threshold.

"That is a clear 'no'," Diebold CEO Andy Mattes said in the Reuters report. "We finalized our package to finance the deal at the end of last year. This package is linked to the price and to the acceptance rate."

Mattes said that due to dramatic changes in the credit market since terms of the deal were set, changes to any of its conditions would require Diebold to restructure its financing, which he said "would be very detrimental economically."

Diebold's offer was for 38.98 euros ($43.90) per share. Wincor shares stood at 44.26 euros as of market close on March 22.

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As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.

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