FRANKFURT (Reuters) – Osram (DE:) urged shareholders to back a $5 billion takeover bid from Austria’s AMS (VI:) and said it would cut costs and not pay a dividend as it posted a loss for the fiscal year ending in September, hit by a downturn in the auto industry.

“The offer price of 41 euros per share in cash represents an appropriate valuation of the company from the point of view of the boards,” the company said in a statement.

Shareholders have until December 5, 2019 to accept the offer, Osram said.

In the fiscal year ended in September Osram posted a 343 million euros ($377.99 million) net loss, down from a 188 million euros profit in the year-earlier period.

“Osram does not expect global automobile production to recover in the short term,” the company said, adding that employees at German locations are protected from merger-related layoffs until the end of 2022.

AMS renewed its takeover attempt of Osram earlier this month, hoping its latest offer would convince investors with a lower acceptance rate and concessions to the German lighting group’s management and trade unions.

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