Crane Group Ltd
(ASX:CRG) has rejected a $740 million hostile takeover offer from New Zealand’s Fletcher Building Group Ltd
(ASX:FBU), saying the offer is inadequate and undervalues the company.
The offer, which Crane called “highly conditional” and “opportunistic,” included one Fletcher Building share and $3.44 in cash for each Crane Group share.
Crane says the offer fails to recognise the company’s standalone value and doesn’t take into account the substantial synergies expected to be available to Fletcher.
For the year ended 30 June 2010, Crane reported a net profit of $31.9 million.
