ST Engineering ends bid to acquire Cubic

One day after increasing its bid, ST Engineering said today it has terminated acquisition discussions with Cubic.

The announcement followed Cubic's notice that it would accept a revised proposal from original bidders Veritas Capital and Evergreen Coast Capital of $75 per share.

ST Engineering had initially offered a counter-proposal of $76 per share, which it yesterday increased to $78 per share.

In today's announcement, ST Engineering said Cubic is "determined to accept an offer of US$75 per share in cash that is lower in value than ST Engineering's US$78 per share in cash offer, which we continue to believe is compelling."

Cubic today said its board "gave due consideration to the revised proposal it received from Singapore Technologies Engineering."

"In making its decision, the Board carefully assessed the relative benefits and risks of the proposals from both Veritas and Evergreen and ST Engineering," Cubic added. "The Board determined that, based on the superior certainty and anticipated timing of closing the existing transaction with Veritas and Evergreen, the revised proposal from Veritas and Evergreen was in the best interests of all Cubic's shareholders."