A planned merger between 3D printer manufacturers Stratasys and Desktop Metal is facing resistance. Influential voting advisor ISS is recommending that Stratasys shareholders vote against the merger at the company’s annual general meeting on Sept. 28, Reuters reports.
According to ISS, it is not apparent that the currently planned purely share-based acquisition of Desktop Metal will create actual value for Stratasys shareholders. Instead, ISS believes a takeover bid by rival 3D Systems is the more attractive option.
3D Systems had offered 46 percent of its own stock and $7 per share for Stratasys last week. However, Stratasys rejected the offer. Major shareholder Nano Dimension also already announced it would vote against the merger with Desktop Metal.
ISS’s recommendation carries a lot of weight at shareholder meetings. It thus further complicates the planned merger of the two leading suppliers in 3D printing. For years, the companies have been trying to leverage synergies in the fragmented market through consolidation.