Bidder says ‘volatile’ ISG at risk if takeover rejected
The war of words between the board of ISG and the contractor’s biggest shareholders has intensified.
Despite getting very limited support from other shareholders when first pitching to take over the company, Cathexis has extended its offer of 143 pence per share until 25th January. (See previous report here.)
In a new appeal to shareholders it said: “ISG has demonstrated a history of volatile trading, has repeatedly failed to meet expectations and has delivered poor returns to shareholders relative to its peers.” It’s offer price is therefore reasonable, it said.
It also said that while Cathexis had been a supportive shareholder to date, if its takeover bid failed “the provisions of the City Code limit its ability to provide future support”.
However, ISG has repeated that the offer “fails to reflect the recent growth and future potential of ISG's core fit out businesses”.
ISG’s board told shareholders: “Cathexis is an astute investor which has bought its ISG shares at times when the share price has been low and now sees further value in your ISG shares at your expense.”
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This article was published on 20 Jan 2016 (last updated on 20 Jan 2016).