Key Takeaways
Activist investor PrimeStone Capital has publicly urged Intertek Group’s board to engage with a sweetened £8.93 billion ($12.18 billion) takeover proposal from Swedish private equity firm EQT, escalating the pressure on the British testing company.
"The (Intertek) board's latest response does not, in our view, reflect the serious engagement that this approach merits," PrimeStone said in a public letter released May 11. The activist, which holds approximately 0.5% of Intertek, urged the board to grant supervised due diligence access to EQT.
Intertek has rejected three proposals from EQT, including the most recent offer of £59.10 per share, which the board said "significantly undervalues" the company and carries execution risk. Instead, Intertek is pursuing a strategic review announced April 14 that could see the firm split into two separate businesses, a move the board believes offers greater value to shareholders.
The activist pressure mounts ahead of a May 14 "put up or shut up" deadline, by which EQT must announce a firm intention to make an offer or walk away. Bloomberg News also reported that another activist, Palliser Capital, has built a stake in Intertek, further intensifying the situation.
PrimeStone directly challenged the board's valuation assessment, arguing that the EQT offer represents a 55 percent premium to the undisturbed share price. The activist firm noted that the bid exceeds the average sum-of-the-parts equity value of £58 published by major sell-side banks since Intertek announced its review. The letter highlighted Intertek's total shareholder return underperformance against its main peers, SGS and Bureau Veritas, as well as the FTSE 100 and MSCI Europe, during the current CEO's 11-year tenure.
In its rejection, Intertek’s board has focused on a plan to separate its Intertek Testing & Assurance and Intertek Energy & Infrastructure businesses. The company stated it has already received an "encouraging level of interest" from potential buyers for the Energy & Infrastructure unit, which generated £1.59 billion in revenue in 2025, compared to the Testing & Assurance division's £1.84 billion.
The situation places Intertek's board at a crossroads, forced to weigh a significant all-cash offer against the potential, and uncertain, future value of a company breakup. Investors will be closely watching for EQT's final decision on May 14 and any further response from the Intertek board.
This article is for informational purposes only and does not constitute investment advice.
