Optical component maker II-VI jumps into fray for Coherent with $6.4 bln bid

Optical component maker II-VI Inc said on Friday it has offered to buy laser maker Coherent for about $6.4 billion, entering a bidding war with Lumentum Holdings and MKS Instruments for a larger share of the fast-growing laser market. II-VI's cash-and-stock offer values Coherent at $260 per share, a premium of 14.6% to the stock's last close.

Optical component maker II-VI Inc said on Friday it has offered to buy laser maker Coherent for about $6.4 billion, entering a bidding war with Lumentum Holdings and MKS Instruments for a larger share of the fast-growing laser market.

II-VI's cash-and-stock offer values Coherent at $260 per share, a premium of 14.6% to the stock's last close. Coherent's shares jumped 14%, while II-VI's stock slipped 7% in pre-market trading. Shares of Lumentum rose 2.7%, with MKS flat.

Coherent agreed to a $5.7 billion deal with optical fiber specialist Lumentum Holdings last month, weeks after which the company received a $6 billion takeover offer from MKS Instruments. II-VI said on Friday its offer represents a premium of 24% to the implied value of Coherent's deal with Lumentum, and a 9.8% premium to that of MKS' offer.

Lumentum reiterated on Thursday that its deal was superior to MKS' offer, which it said would face substantial regulatory hurdles. The cash-and-stock offer by MKS valued Coherent shares at $240 apiece. "Since II-VI has substantially less product overlap with Coherent than either Lumentum or MKS, II-VI believes there is greater certainty of closing", the company said.

Coherent did not immediately respond to requests for comment.