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Nov. 12, 2019, 2:05 a.m. EST

Osram recommends Ams offer and agrees on job protections in case of deal

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By Max Bernhard

Osram Licht AG (OSR.XE) said Tuesday that it has agreed on key terms for a potential takeover by Ams AG (AMS.EB), including job protections for its German employees.

Osram /zigman2/quotes/205623891/delayed DE:OSR +0.57%  said its boards recommend Ams’s /zigman2/quotes/204183137/delayed AT:AMS -5.31%  takeover offer to shareholders, who have until Dec. 5 to accept.

Under the business combination deal struck with Ams, Osram’s employees are protected from layoffs for about three years if a deal goes through and roughly half of the central functions would be managed from its Munich location as the co-group headquarters, it said.

“The most important thing is that the employees at German locations are protected from merger-related layoffs until the end of 2022,” Osram Chief Executive Olaf Berlien said. Osram’s works council said Monday that it filed a court appeal against Germany’s market regulator BaFin in order to stop the takeover offer.

Meanwhile, Osram reported some preliminary earnings figures for the fourth quarter. Revenue fell by 5.3% to 924 million euros ($1.02 billion), while it swung to a EUR203 million aftertax loss in the quarter. The company said it expects “a stabilization” in fiscal 2020.

DE : Germany: Frankfurt
+0.30 +0.57%
Volume: 0.00
June 30, 2021 8:59p
P/E Ratio
Dividend Yield
Market Cap
Rev. per Employee
AT : Austria: Vienna
-0.45 -5.31%
Volume: 30,498
Aug. 17, 2022 5:32p
P/E Ratio
Dividend Yield
Market Cap
€2.23 billion
Rev. per Employee

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