MMC Contrarian board hangs tough
The board of publicly-listed financial services house, MMC Contrarian (MMC), is maintaining its opposition to a takeover bid by Guinness Peat Group (GPG).
GPG late last week announced it was increasing its takeover bid for MMC from 48 cents to 50 cents per share, saying its offer would not extend beyond the close of trading on 23 October.
However the MMC Contrarian board declared it will be recommending to shareholders that they not accept the offer on the basis that it still did not appropriately value the company.
The directors noted, however, that there were certain risks involved in remaining a shareholder in MMC and that shareholders who wished to take advantage of the liquidity afforded by the increased, final GPG offer could consider selling their shares for the best price available on the market.
MMC Contrarian earlier this month declared its intention of moving further into the financial planning industry after lowering exposure to funds management.
AUTHOR
Mike Taylor
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