Fletcher's Crane bid labeled 'not fair'
Fletcher Building's $754 million hostile offer for Australian plumbing and building supplies firm Crane Group is unfair and not reasonable, according to Crane's independent expert.
Fletcher Building's $754 million hostile offer for Australian plumbing and building supplies firm Crane Group is unfair and not reasonable, according to Crane’s independent expert.
Sydney-based Crane, which rejected Fletcher's cash and scrip offer shortly after it was launched mid-December, said it would release its official response to the bid next week.
Fletcher, which already owns 14.9% of Crane, is offering one Fletcher share and $A3.47 cash per share – less Crane’s interim dividend, declared last week at 22c a share.
Independent expert Ernst & Young says this values Fletcher’s offer in the range of $A9.05 to $9.45 a share, whereas its fair market value of Crane was in the range of $9.92 to $11.56 per share, on a controlling and ex-dividend basis.
The offer did not include a control premium, Crane said the independent expert had concluded.
"It is the opinion of Ernst & Young Transaction Advisory Services Ltd that the offer by Fletcher Building Australia is not fair and not reasonable to the non-associated shareholders of Crane," the target said in a statement released after the market closed yesterday.
Crane shares closed up six cents at $A9.58 yesterday.
Fletcher [FBU:NZX] shares closed 8c higher at $7.90 on the NZX.
NBR staff
Wed, 26 Jan 2011
Wed, 26 Jan 2011
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Fletcher's Crane bid labeled 'not fair'
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