A $A740 million takeover offer by Fletcher Building has been rejected by the board of manufacturing and building materials supplier Crane Group in Australia.
The board described it as inadequate, opportunistic and undervaluing Crane's shares.
Fletcher, which already has a 14.9% stake in Crane, is offering $A9.35 per Crane share, made up of one Fletcher share and $A3.47 cash.
Crane shares were trading above the offer price yesterday at $A9.39.
Crane chairman Leo Tutt said in a letter to shareholders yesterday they should reject the "unsolicited and inadequate takeover offer" and await an independent report commissioned by the board on the value of Crane shares and the Fletcher offer.
"The timing of the offer is opportunistic, given Crane Group's growth prospects and the expectant recovery in the housing market," Mr Tutt said in a statement to markets yesterday.
His announcement coincided with speculation surfacing in the Australian Financial Review that Crane had been talking to other interested parties, but it was unclear whether an alternative bidder would buy all or part of the Crane Group.
