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Telit Communications says DBAY offer fundamentally undervalues company
StockMarketWire.com
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Internet of things investor Telit Communications said a takeover offer lobbed by largest shareholder DBAY Advisers 'fundamentally' undervalued the company.
DBAY on Friday said it was considering a possible offer of £1.90 per share for Telit.
It soon followed up with a second announcement on Friday stating that it had bought 471,516 Telit shares, with the highest price paid £1.948 per share.
Under UK takeover rules, any offer would therefore need to be at or above that price.
'The board of Telit believes that an offer at £1.948 per Telit share would fundamentally undervalue Telit,' Telit said.
'As highlighted in the trading update released on 10 November, Telit has shown resilience despite continued lockdown measures across the company's markets and the impact of the pandemic on customer spending.'
DBAY also said it was considering an an alternative, share-based takeover offer for Telit made by Swiss group U-blox, but was minded to reject it.
On Monday, Telit said its board believed that the 'industrial logic' in a combination with U-blox could create value for shareholders.
'However, any combination would need to be on terms that reflect Telit's financial performance and position and be structured in a way that ensures the benefits of the combination would be delivered,' it added.
'Telit is continuing commercial discussions with both U-blox and DBAY with a view to ensuring that any possible transaction with either party would be in the best interests of all shareholders, whether large or small.'
Story provided by StockMarketWire.com
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