Takeover target Abano Healthcare has asked its shareholders to wait for a board recommendation on a hostile takeover bid, noting the instigators had previously cost the company and shareholders more than $1 million.
Dissident shareholder group Peter and Anya Hutson and James Reeves, via their entity Healthcare Partners, have a 19% stake in Abano, but in early November launched a $10-a-share bid to gain a controlling 50.01% shareholding.
In 2013, Mr Reeves and Mr Hutson were unsuccessful in a $6.97-a-share takeover bid.
Abano chairman Trevor Janes, and all the board, said in a statement yesterday the Hutsons and Mr Reeves had all been involved in previous attempts to gain control of Abano and force changes to Abano’s board.
"These prior attempts were unsuccessful and disruptive to Abano, and have cost Abano and its shareholders in excess of $1million, not including management time," Mr Janes said.
He asked shareholders to wait until Healthcare Partners sent out its formal offer document, which would then be followed by Abano’s target company statement, including the board’s recommendation and also an independent adviser’s report, before making a decision.
"The preliminary view of the board is that the partial nature of the proposed offer is not in the best interests of shareholders," the board’s statement said.
