Solidion Holds Below-Market Bid for Flux Power After Board Rejection
Solidion Technology is maintaining its below-market takeover offer for Flux Power, citing dilution risks, regulatory issues, and default concerns.
Solidion Technology, Inc. (NASDAQ: STI) is standing firm on its below-market acquisition offer for Flux Power Holdings (NASDAQ: FLUX) after Flux Power's board rejected the bid, the Dallas-based company announced October 5, 2026.
Solidion said it sees no justification for raising its offer price, arguing that Flux Power continues to face significant financial headwinds. The company cited what it described as heavily dilutive financing requirements, unresolved regulatory concerns, and an elevated risk of debt default as factors that weigh on Flux Power's intrinsic value.
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The decision to maintain rather than sweeten the offer marks an unusual posture in merger negotiations, where acquirers typically respond to board rejections by either raising their bid or walking away. Solidion's stance suggests the company believes Flux Power's vulnerabilities are severe enough to justify patience and price discipline, even at the cost of a prolonged standoff.
Flux Power, which manufactures lithium-ion battery solutions for industrial equipment, has not indicated any willingness to reconsider the rejected offer. The Flux Power board's refusal to engage leaves the situation at an impasse, with Solidion publicly pressing its case rather than pursuing alternative paths such as a direct shareholder appeal.
The outcome of the standoff could hinge on whether Flux Power's underlying financial pressures worsen, potentially making Solidion's offer more attractive to shareholders even at its current below-market level. Continue reading at All Financial Services & Investing.
