The board of houseware product wholesaler Breville Group (ASX:BRG) has unanimously rejected a takeover offer from GUD Holdings, and urged its shareholders to do the same.
Breville said an independent expert had rejected the all-stock offer – which was assessed to be worth between $2.57 and $2.66 per share, as inadequate.
The offer failed to take in to account the potential business synergies that could be achieved, and the fact that Breville had raised its earnings guidance since GUD made the approach, the company warned investors.
The value of the offer is also dependent on the strength of GUD shares, and GUD has yet to issue earnings guidance for FY10.
But Breville added that it believes GUD has significant capacity to make an offer at a higher price in the future.
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