ISG said that its board was unanimous in its rejection of the offer of 143 pence per share, which it believes “significantly undervalues ISG and its future prospects”.
The board said that it would be writing to shareholders with its formal response to the Cathexis offer once the offer document had been posted. “In the meantime, shareholders are strongly advised to take no action and, in particular, not to sell their ISG shares,” the company said.
ISG chairman Roy Dantzic said: "Cathexis' offer is unsolicited and totally inadequate. Disappointing trading conditions in our UK Construction divisions aside, it fails to reflect the strong trading conditions and outlook for the rest of our business. As such the Board urges ISG shareholders to reject this offer once made."