Renishaw plc (LSE:RSW) is struggling to attract takeover interest because of a hefty price tag and list of ownership demands, people familiar with the matter said. Rival engineering companies Hexagon AB (publ) (OM:HEXA B), Schneider Electric S.E. (ENXTPA:SU) and Siemens Aktiengesellschaft (XTRA:SIE) all decided against pursuing Renishaw, the people said, asking not to be identified discussing confidential information. While several competitors viewed Renishaw and its technology as attractive, they were turned away by a high valuation that makes a deal prohibitively dilutive to earnings, the people said.

The U.K. firm, which has a market value of £4.1 billion ($5.8 billion), received only a limited number of bids by a mid-April 2021 deadline after more than a dozen suitors looked at sales documents, the people said. The company could struggle to agree any sale at a premium to its current stock price, the people said. The identities of the bidders that submitted proposals for Gloucestershire-based Renishaw couldn't immediately be learned.

Danaher Corporation (NYSE:DHR), which was considering partnering with Fortive Corp., and Swedish engineering group Sandvik AB (publ) (OM:SAND) had earlier been weighing offers, the people said. It is exploring a sale with the help of UBS Group AG (SWX:UBSG) . Should a deal fail to materialize, McMurtry and Deer could opt to sell down some of their shares in the market over time, the people said.

They could also decide to place theirs takes in a trust or keep Renishaw independent, according to the people. The sale process is ongoing, a person close to the company said. Keyence Corporation (TSE:6861) and Foxconn Technology Co., Ltd. (TWSE:2354) have also been touted as potential bidders for Renishaw, and a surprise suitor may yet emerge, the people said.

A spokesperson for Hexagon confirmed the company had not made a bid for Renishaw. Representatives for Renishaw, Sandvik, Schneider and Siemens declined to comment, while spokespeople for Danaher and Fortive didn't immediately respond to requests for comment.