CA Bancorp board urges shareholders to spurn Maxam's bid
23 Dec 2009
The board of directors of Canada's CA Bancorp Inc recommended that shareholders reject the hostile take over bid by Maxam Acquisition Corporation as the offer fails to provide full value for C.A. Bancorp's assets and shares.
Maxam's C$1.22 per share offer values the Canadian merchant bank at about C$32.6 million ($31.08 million).
CA Bancorp's stocks closed unchanged at C$1.36 a share on the Toronto Stock Exchange on Tuesday.
Private equity funds Maxam Opportunities Fund LP and Maxam Opportunities Fund (International) LP proposed an all-cash takeover offer for C.A. Bancorp on 3 December.
In making its recommendation, the Bancorp's board states that, as of now the consideration offered under Maxam's offer is inadequate, from a financial point of view, to the company's shareholders.
"Our board believes that Maxam's offer is financially inadequate, opportunistic, and fails to recognise the full value of C.A. Bancorp's assets and future value-creation potential," said Timothy Unwin, chairman of the special committee said in a statement yesterday.
.webp)
