Cascal Recommends Shareholders Reject Sembcorp Tender Offer
June 01 2010 - 01:26PM
Dow Jones News
DOW JONES NEWSWIRES
Cascal NV's (HOO) board again rejected a $206 million takeover
offer from Sembcorp Industries Ltd. (U96.SG), calling it
"inadequate" as it "grossly undervalues" the waste-water management
company.
The board, in recommending shareholders not tender their
holdings in support of the $6.75 a share bid from the Singapore
conglomerate, is "actively holding discussions and negotiating
strategic alternatives that we hope can result in a superior
transaction for stockholders of Cascal," the company said in a
statement.
Sembcorp formally launched its offer May 21. Before doing so, it
had agreed to buy Biwater Investments Ltd.'s 58% stake. Cascal said
Tuesday that it believed the sale was a result of Biwater's
financial distress and pressure from its financial advisor HSBC
Holdings PLC. (HBC). Biwater owned Cascal at the time of its 2008
initial public offering.
Cascal shares were up 1.7% to $6.66 in recent trading. The stock
has risen 23% this year.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com;
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