(Bloomberg) -- Bang & Olufsen said talks with Sparkle Roll Group Ltd. for a potential takeover were terminated after the Chinese suitor missed an offer deadline for the Danish luxury hi-fi maker.
The announcement, which drove Bang & Olufsen A/S shares lower, followed news that Qi Jianhong, the China-based billionaire who is now the biggest owner of the Danish company, would only be interested in building his stake at no more than 70 kroner a share. That compares with the 85 kroner Qi, who owns 28 percent of Chinese luxury-goods distributor Sparkle Roll Group Ltd., spent buying 5.67 million shares last week.
“In its lengthy dialogue with Sparkle Roll, Bang & Olufsen’s board of directorshas on several occasions been provided with indicative deadlines for SparkleRoll to come to a resolution in respect of its launch of a tender offer,” the Danish company said in the statement on Friday. “The latest of these deadlines has been 15 April 2016.”
Shares in Bang & Olufsen lost as much as 13 percent and traded 9.6 percent lower at 71 kroner as of 3:43 p.m. in Copenhagen. Qi owned about 19 percent of Bang & Olufsen, after last week’s share purchase.
“As Sparkle Roll has not committed to launch a tender offer for all shares inBang & Olufsen and has not been able to substantiate its ability to launch sucha tender offer, Bang & Olufsen’s board of directors has today decided to informSparkle Roll that it considers the dialogue regarding a potential tender offerterminated,” the company said.
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