Bain Capital and Cinven have failed to gain enough shareholder approval for their €5.32 billion takeover agreement for German generic drugmaker Stada. The private equity firms needed investors representing 67.5% of Stada shares to support the agreement, but they only could garner 65.52%.
Why it matters: This was no cut-rate offer. Bain and Cinven had overcome a rival bidder, and their final per-share price represented a 49% premium. But it seems that some of Stada's shareholders – which include an unusually high percentage of retail investors – believe private equity's pockets are a bit deeper. So far, the reporting suggests they are wrong.