Tavistock Investments (LON: TAVI) revealed on Wednesday that it has received numerous letters from shareholders stating their intention to reject the possible all-share offer by TEAM plc (LON: TEAM).
The letters of intent represent, in aggregate, 24.88% of the company’s issued share capital, with the board of Tavistock representing 16.01% of the issued share capital, and they too stating they will not accept any offer from TEAM.
In total, 40.90% of Tavistock’s shareholders have indicated they will not accept an offer from the investment firm.
Tavistock stated that TEAM has received support for the takeover from shareholders representing around 15% of the issued share capital since the announcement of its possible offer.
Tavistock stated that the approach by TEAM significantly undervalues its business, is not in the best interest of its shareholders and that there is no commercial logic to justify a combination of the two firms.
Last week, Tavistock reiterated its stance that the takeover is without merit, and it has rejected two approaches in recent weeks.
Tavistock’s share price is up 5.10% on Wednesday at 2.78p, while TEAM’s shares are down 1.73% at 85p.
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