Trillium Capital values Getty Images at $3.95 bn in all-cash buyout bid

Activist investor Trillium Capital said on Monday it offered to buy the shares it does not already own in Getty Images Holdings Inc in an all-cash deal, valuing the stock-photo company at $3.95 billion.

Trillium, which holds over 500,000 shares of Getty Images, offered to buy the rest at $10 apiece, representing a premium of nearly 98% to the stock's last close.

Shares of Getty Images rose nearly 43% in morning trade to $7.25, much below the offer value, indicating there were concerns over the deal going through.

The proposal comes after the investor asked Getty Images for a board seat and urged the company to evaluate options including a sale to either private equity or strategic players, saying it could boost the company's shares to more than $12 and add over $1 billion to its market capitalisation.

Trillium had also said the company should expand and create partnerships with tech firms and publishers to grow its revenue.

Getty Images did not immediately respond to a Reuters request for comment on Monday.

Trillium said it could allow large investors in the company - The Getty Family, Koch Industries and Neuberger Berman - to roll some or all their shares into the deal.

The activist investor also urged Getty's board to enter into a non-disclosure agreement while warning it may pull its non-binding proposal at any time.

Trillium expects its managing partner Scott Murray to join the Board of Getty and become its Chairman, if an agreement is reached and the transaction is completed.

Founded in 1995 by Mark Getty and Jonathan Klein, Getty Images competes with Reuters News and Associated Press to provide photos and videos for editorial use.