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Webjet Group (ASX:WJL) has firmly rejected a takeover bid it received from BGH last week which had the effect of pushing up Web’s share price out of the blue on Thursday 8 May.
That shot the stock to 80cps; as of the first half hour of trades on Friday, shares are worth 88cps.
Except most investors on HotCopper seem to think that anything below a flat $1.00/sh deal is a direct lowball. Or, to use a corporate term, strategic undervaluation.
In that same light, Webjet itself on Friday stated that it rejects the BGH offer and won’t be handing over any materials to BGH with which the latter could kick off due diligence.
That, for now, appears to be in keeping with what multiple investors have themselves told the company in light of the non binding indicative offer (NBIO) lobbed at Webjet earlier this month.
“The Board has also consulted with and considered feedback received from a number of shareholders in relation to the BGH Proposal,” Webjet wrote, in explaining how it came to reject the offer. Legal advisers also said the same thing, the company noted.
WJL last traded at 88cps.
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