Board reluctantly advises shareholders to accept 拢85m offer by US investor Cathexis
ISG鈥檚 board has reluctantly u-turned and backed the 拢85m takeover bid for the firm by US investor Cathexis.
In a statement to investors this morning, the ISG board advised shareholders to accept the bid, after it learned Cathexis had amassed an interest in 48.4% of its shares - Cathexis only requires 50% support to seal the deal.
The ISG board, led by chief executive David Lawther (pictured), stressed it still believes the offer 鈥渦ndervalues鈥� the company, but it argued it was now in the best interests of shareholders to accept the deal given Cathexis鈥� significant and growing minority stake in the business.
ISG鈥檚 board initially rejected both offers by Cathexis for the company, including the latest offer of 拢1.71 a share, or 拢85m.
Cathexis鈥� original offer, made in December, was for 拢1.43 a share, or 拢71m in cash.
Tony Williams, analyst at 好色先生TV Value, said: 鈥淭he Americans have played a blinder and have pretty much herded ISG to the exit for a knock down price.鈥�
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