Raymarine reject Garmins offer

Well after yesterdays reports that Garmin had tabled an offer to the Raymarine shareholders for the purchase of their rivals, news has just been announced that the Raymarine board has urged it's shareholders to take no action with regards to this offer.

The Raymarine board have however announced that they are in advanced talks with a third party over the sale of Raymarine Holdings LTD who are offering a price of 17.5p per share (the Garmin offer was 15p per share).

we will keep you posted on any further news

Garmin bid for Raymarine

After months of speculation marine electronics specialist Garmin have made a formal offer to acquire competitor Raymarine for a price of 15 pence per share. If approved the deal would see Garmin pay Raymarine shareholders an estimated £12.5 million, Garmin would also have to taken the significant debt that Raymarine currently owe, last published at a net figure of £91.6 million.

Raymarine have seen a sharp drop in share price from there peak in April 2007 at 490p per share this has been blamed on the whole on the decline in demand for hi-end electronics since the economic down turn.

There seems to be mixed opinions to whether the merger will be allowed to go through due to competition laws, but Garmin believe when combined the 2 company's will still below 30% of the market share which is below the level where concerns normally arise.

We will keep you posted with any further updates.