LONDON, February 1, 2016 /PRNewswire/ --
Elliott announced today that it believes Hitachi Rail Italy Investment's EUR 9.50 per share offer for STS significantly undervalues the company and therefore intends not to tender its shares.
STS is a unique strategic asset with market leading products and world-class technologies in TMS, signaling, ERTMS and driverless mass transport systems, poised to benefit from increased adoption and urbanization trends. The Company has a solid track record of growth further evidenced by recent contract wins.
Elliott believes the combination of STS and Hitachi Rail's complementary geographical exposures, product portfolios and competencies will create a leading integrated player in the global rail market, able to compete for larger contracts, increase operational efficiencies and leverage cross selling opportunities leading to higher market shares across geographies.
It is our opinion that these benefits will create additional shareholder value and that value is not reflected in Hitachi's current offer price. For that reason we do not intend to tender our shares. We would hope other STS shareholders will not tender their shares and that the Company remains listed allowing all shareholders to benefit from the value creation that we expect from the combination
Elliott Associates, L.P. and Elliott International, L.P. together have approximately $27 billion of assets under management. Founded in 1977, Elliott is one of the oldest investment funds under continuous management. The Elliott funds' investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm.