GE Drops Bid to Acquire Germany's SLM Solutions Group

FRANKFURT—General Electric Co. said Wednesday its €672 million bid for 3-D printing company SLM Solutions Group AG has failed after an activist investor amassed enough shares to foil the deal.

GE's offer for SLM was dependent on securing 75% of the German company's shares, but last week a fund belonging to Elliott Management Corp. said it held more than 20% of SLM, creating a significant stumbling block.

Elliott said previously it "believes that GE's offer is not in the best interests of SLM shareholders."

GE said the minimum acceptance threshold wasn't met at the time of the expiration of the acceptance period on Monday.

"Consequently, the offer has lapsed," GE said in a press release.

Shares of SLM Solutions fell more than 5% following the announcement in after-market trade.

GE's bid for SLM was part of a planned $1.4 billion push into 3-D printing in Europe. GE also bid roughly $700 million for Sweden's Arcam AB, another company active in so-called additive-manufacturing technology.

The Arcam offer is also in question. Elliott has taken a 10.14% stake in the Swedish company, making it highly unlikely GE can meet the minimum acceptance threshold of at least 90% of shareholders agreeing to the deal.

GE had unveiled plans to buy both companies in September to expand its ability to make aircraft components and other parts using 3-D printing technology.

Write to Sarah Sloat at [e-mail] and Natascha Divac at [e-mail]

(END) Dow Jones Newswires

October 26, 2016 14:45 ET (18:45 GMT)

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