On Tuesday, the FTSE 100 index in the UK fell by 1.4% amid ongoing geopolitical tensions, particularly the US-Israel conflict. Surprisingly, the index is still up slightly since the beginning of the year, which defies expectations given the looming inflationary energy price shocks. A key reason for this stability is the absence of profit warnings from companies due to the conflict, along with the presence of many overseas earners in the index. Higher oil prices are also beneficial for companies like Shell and BP.

Amid this backdrop, Swedish private equity firm EQT has made a significant cash bid for Intertek, a product testing and quality inspection company, increasing its offer to £58 per share from £54 and £51.50. This offer represents a 54% premium over Intertek’s share price prior to the bid. However, Intertek's board is not under pressure to accept the offer, as the current market price is £50.90, indicating that investors are not fully convinced of the bid's attractiveness. The situation raises questions about whether Intertek could achieve greater value through a strategic breakup of its divisions, which EQT might also consider if it gains control.