Coherent shares shoot up after Lumentum increases buyout bid to $6.9 billion

Shares of Coherent Inc.
COHR,
+0.54%
shot up 9.8% in premarket trading Wednesday, after the Lumentum Holdings Inc.
LITE,
-0.23%
said it increased its buyout bid for the laser technology company, in response to a bid from II-VI Inc.
IIVI,
+0.98%
that Coherent had determined was “superior” to the previous agreed-on deal with Lumentum. Lumentum’s stock fell 1.0% and II-VI shares slipped 0.2% ahead of the open. The revised cash and stock bid values Coherent at $6.9 billion, up from the previous bid that valued Coherent at $6.6 billion. Under terms of the revised bid, Coherent shareholders would receive $220.00 in cash and 0.6100 of Lumentum shares for each Coherent share they own. Based on Tuesday’s closing prices, that values Coherent’s stock at $275.00, a 10.6% premium. Also part of the bid, investment fund Silver Lake will make a $1 billion investment in the combined company. “Our Board of Directors remains steadfast in our belief that the combination of Lumentum and Coherent will create a diversified industry leader best positioned to accelerate the future of photonics,” said Lumentum Chief Executive Alan Lowe. Coherent’s stock has soared 77.6% over the past three months through Tuesday while the S&P 500
SPX,
-0.16%
has gained 6.5%.