Coherent stock gains after Lumentum counters II-VI’s latest bid with a higher buyout proposal

Shares of Coherent Inc.
COHR,
-0.68%
rose 0.8% in premarket trading Tuesday, after the laser technology company after Lumentum Holdings Inc.
LITE,
+2.36%
proposed a higher buyout bid, which would top the latest unsolicited bid from II-VI Inc.
IIVI,
-2.30%,
which Coherent deemed was “superior” to the previously agreed upon bid from Lumentum. Shares of Lumentum dropped 1.9% ahead of the open, while II-VI stock inched up 0.1%. Under terms of the revised bid, Coherent shareholders will get $230 in cash and 0.6724 Lumentum shares for each Coherent share they own. Based on Monday’s closing prices, the bid terms values Coherent shares at $287.50 each. That implies a $7.03 billion market capitalization for Coherent. The latest bid from II-VI valued Coherent stock at $286.785 each, and implied a market cap of $7.01 billion. Coherent said it will review Lumentum’s new bid in comparison with II-VI’s bid. Coherent’s stock has soared 72.3% year to date through Monday, while Lumentum shares have shed 9.8% and the S&P 500
SPX,
+0.70%
has gained 4.9%.