Pilkington, which last week rejected a £1.9BN offer from its Japanese shareholder, is expected to come under increasing pressure after leading investment banks, who are not connected with either side of the deal, said that its 150p/share offer price represented an accurate valuation of the glassmaker. Analysts at Deutsche Bank published a note (4 Nov) arguing that the 150p offer price represented fair value for investors. In its note, Deutsche Bank said: "We believe it is fair for investors as there is no obvious counterbidder, synergies are low, market conditions are tough & the downside to Pilkington if the bid collapses is material."Goldman Sachs, the US investment bank, also said it expects Pilkington to accept NSG's bid eventually, but that it believes that NSG may have to raise the price to 155p to "ensure a smooth deal". The European equity research team of Credit Suisse First Boston concluded: "In takeovers the outcomes will always be binary. In the case of Pilkington, however, we see the downside risk from an unsuccessful takeover as greater than most equivalent situations as there is no credible alternative bidder. This is because of the industry structure and because of NSG's 20.6 per cent blocking stake."
