17393 Tue, 11/24/2009 - 12:16pm
BOTANY, Australia–The board of directors of Breville Group, the parent company of Breville USA, has rejected a takeover offer from GUD Holdings.
GUD is an Australian manufacturer of small appliances, cleaning hardware, auto parts, water products and security products.
According to a statement from the board to Breville shareholders, the directors were unanimous in turning down the offer. Among the reasons listed in the statement were GUD’s offer of $2.02 to $2.07 per Breville share to obtain 50.1 percent control of the company, or $2.36 to $2.45 per share for 100 percent control. The board said it had commissioned an independent expert, PwC Securities, which said the offer was below its valuation of Breville’s shares, which PwC put at $2.51 to $2.67 per share.
“Your board believes Breville has significant strategic value to GUD,” the statement said, “including providing access to an international business and the Breville brand which can be used in North America.”
The statement also referred to a letter to Breville shareholders from John Schmoll, the company’s non-executive chairman. In this letter, Schmoll said if GUD acquired a controlling interest in Breville but not 100 percent ownership, the company might come back with a higher offer for the remaining shares in the future. “Breville shareholders who accept the current offer will not benefit from any such higher price,” Schmoll said.