Solidion Technology Holds Firm on Below-Market Bid for Flux Power
Solidion Technology is standing by its discounted offer for Flux Power, citing dilutive financing needs, regulatory issues, and default risk.
Solidion Technology (NASDAQ: STI) said it sees no reason to raise its below-market acquisition offer for Flux Power (NASDAQ: FLUX) after Flux Power's board formally rejected the bid, the Dallas-based company announced on October 5, 2026.
Solidion argued that Flux Power's financial position weakens the target's negotiating stance, pointing to what it described as heavily dilutive financing requirements, unresolved regulatory concerns, and an elevated risk of debt default. The company contends those pressures justify a purchase price below the prevailing market value rather than a premium.
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The move is unusual in deal-making, where acquirers typically offer premiums to win board approval and shareholder support. By publicly holding its ground after a rejection, Solidion is applying pressure on Flux Power's management and investors to reconsider, effectively arguing the company's standalone outlook is worse than the offered terms imply.
Flux Power has not publicly detailed the specific terms it found unacceptable, but its board's rejection signals the two sides remain far apart on valuation. How Flux Power addresses its alleged financing shortfalls and regulatory challenges in the months ahead could determine whether fresh negotiations materialize or the pursuit collapses entirely.
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