Apollo Drops Applus Bid After Limit Set on Deals by Hedge Funds

Apollo Global Management Inc. withdrew its takeover bid for Applus Services SA, allowing a group formed by I Squared Advisors and TDR Capital to get closer to winning control of the Spanish company through a rival €1.65 billion ($1.8 billion) offer.

The buyout firm’s decision marks the end of a bidding war that started last summer when Apollo and the rival group filed offers for the Barcelona-based industrial certification company. Both suitors improved their bids in the following months, with ISQ and TDR ultimately beating Apollo in a bidding process involving sealed envelopes by offering €12.78 per share, higher ...