Industry Odisha Bureau, Oct 12: Tata Motors has raised its Iveco offer to €14.40 a share. Three large investors have yet to tender. With acceptances at 28.4%, the 26 October deadline is drawing close.
Tata Motors has raised its offer for Iveco Group NV to €14.40 per share. Yet three of the Italian commercial vehicle maker’s biggest investors have not tendered. Their decision could shape whether the cross-border acquisition proceeds.
Acceptances stood at just 28.4% of shares at the latest count. A tender offer invites shareholders to sell their holdings on set terms. This one closes on 26 October, giving Tata Motors under two weeks.
The revised price, announced on 9 October, is 2% above the original offer. It adds about €81 million to the €3.8 billion deal unveiled in July 2025. Tata Motors has called this its best and final price, ruling out further increases.
The company cites a 6.77% premium to Iveco’s 29 July 2025 closing price. That was the last trading day before the deal was announced. Iveco shares closed at €14.40 on 9 October, matching the new offer.
Petrus Advisers, an activist investor, had rejected the original offer on 29 September. It argued the price undervalued Iveco against its peers. Petrus also said shareholders deserved a fairer share of the deal’s synergies.
Synergies are the gains expected from combining the two businesses. Petrus further sought compensation for roughly 15 months between announcement and expected closing.
Hedge funds Davidson Kempner and Syquant Capital own about 10.17% and 6.45% respectively. Petrus holds about 3.8% of Iveco’s common shares. Together, the three hold roughly 20.4% of the common stock.
Concentrated holdings give such investors outsized weight when a buyer needs high acceptances. Exor, Iveco’s largest shareholder, has already tendered its 27.06% stake. That stake, however, carries about 43% of the voting rights. Voting rights decide influence over resolutions, and can differ from ownership.
Iveco shareholders will meet at an extraordinary general meeting on 16 October. If the relevant resolution passes, acceptances must reach at least 80% of common shares. Otherwise, the bar rises to 95%.
Exor’s large voting block could help Tata Motors at the meeting. It does not, however, guarantee the outcome. Either threshold sits far above the current 28.4% acceptance level.
Even the three funds’ combined 20.4% would not, alone, close that gap. Wider participation from smaller global funds and retail holders will also matter.
The deal has slipped by at least two quarters. Tata Motors linked the higher price to slower regulatory approvals in some jurisdictions. It maintained that the earlier offer already reflected a “full and fair valuation”.
Completion is now expected by November. Closing would come only after the tender succeeds and other conditions are met.
The three investors did not respond to queries on the revised offer. Tata Motors reiterated its 9 October statement when contacted. Their silence signals neither acceptance nor rejection.
With the 26 October deadline close, the Iveco takeover offer now hinges on participation. Exor’s backing helps, but it cannot meet either threshold alone. The EGM vote on 16 October will decide which bar Tata Motors must clear.
