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Stock Markets May 11, 2026 03:07 PM

PrimeStone Presses Intertek to Engage With EQT After Revised Bid Is Rejected

Activist investor seeks supervised due diligence access and disputes board's 65-pound valuation as takeover dialogue stalls

By Sofia Navarro

Activist investor PrimeStone Capital has urged Intertek's board to open substantive engagement with private equity suitor EQT after Intertek dismissed a third revised takeover offer. Holding roughly 0.5% of Intertek through its advised funds, PrimeStone has requested supervised due diligence access and questioned the board's current fair value assessment amid concerns over the credibility of the company's strategic review.

PrimeStone Presses Intertek to Engage With EQT After Revised Bid Is Rejected

Key Points

  • PrimeStone Capital, owning roughly 0.5% of Intertek via advised funds, urged the board to engage constructively with EQT and grant supervised due diligence access.
  • PrimeStone contends EQT’s third revised proposal does not materially undervalue Intertek and disputes the board’s 65-pound fair value assessment.
  • Intertek rejected EQT’s revised bid citing undervaluation and high execution risk and reported encouraging interest in its energy and infrastructure unit from undisclosed buyers - sectors impacted include testing services, energy and infrastructure, and private equity M&A.

Activist investor PrimeStone Capital has written to the board of Intertek to press for closer engagement with EQT following the British product testing group's rejection of a further revised takeover proposal from the Swedish private equity firm.

PrimeStone, which holds about 0.5% of Intertek via the funds it advises, asked the company in its letter to provide supervised access for due diligence and to adopt what the activist described as a more realistic framework for assessing Intertek's fair value. The investor said EQT's most recent offer - the third revision of its proposal - does not materially undervalue the business.

The activist also voiced scepticism over the credibility of Intertek's ongoing strategic review, a process that PrimeStone suggested could lead to the company being split into two separate entities. In its correspondence, PrimeStone characterised the board's latest reply as falling short of the serious engagement it believes EQT's approach warrants.

PrimeStone rejected Intertek's assertion of a 65-pound fair value after the board dismissed EQT's previous bid, which PrimeStone cited as an 8.93 billion pound proposal equating to 59.1 pounds per share. The investor said the board's valuation appears disconnected from reality.

Intertek declined EQT's revised offer last week, saying the bid both undervalued the group and carried significant execution risk. The company additionally stated it had received an encouraging level of interest for its energy and infrastructure unit from unnamed potential buyers.

The letter from PrimeStone calls for a supervised due diligence process that would allow EQT greater access to the company’s information, and asks Intertek to adjust how it evaluates bids when judging fair value. The activist framed its request as a push for engagement rather than confrontation, arguing that EQT’s latest proposal merited more serious consideration than it had received to date.

Context and implications

PrimeStone’s intervention highlights tension between Intertek’s board and an active potential buyer over valuation and the mechanics of any sale process. The dispute touches on several corporate governance and strategic execution questions, including how the value of individual business units - notably the energy and infrastructure division - is being appraised amid expressions of external interest.

The situation remains in flux: Intertek has declined the revised bid and stands by its assessment of execution risk and value, while PrimeStone continues to press for enhanced engagement and access for EQT.

Risks

  • Valuation disagreement between Intertek’s board and outside parties - impacts corporate governance and M&A outcomes in the testing services sector.
  • Strategic review could lead to a split into two entities, creating uncertainty for stakeholders and affecting the company’s energy and infrastructure unit.
  • Intertek cites high execution risk for EQT’s offer, creating uncertainty over whether a transaction can be completed and affecting private equity M&A activity.

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