Kathmandu's board, having already described the offer as exploitative, reiterated to shareholders yesterday they should sit tight and reject it.
Briscoes (BGR) majority shareholder Rod Duke offered a total $362million, at an implied $1.80 per share, made up of five BGR shares for every nine KMD, plus a cash component of 20c per share. BGR started the takeover having taken a 19.9% stand in KMD.
BGR chairman Dame Rosanne Meo said yesterday the offer price would not be increased, nor the offer period extended, unless it went unconditional because of acceptances.
''Briscoe Group considers that its offer price is attractive, and sees no reason to increase it,'' she said.
An independent report following the takeover play valued KMD shares in a range of $2.10 $2.41, while separately nine analysts who cover KMD, ranged from a low of $1.82 per share to a high of $2.25, the average being $1.94.
Craigs Investment Partners broker Peter McIntyre believes Mr Duke will remain ''hard nosed'' on his offer and the takeover bid ''will die a natural death'', given all the KMD valuations were above Mr Duke's offer.
''He's being cautious and is sticking to his numbers. It's no surprise, he's a value hunter and will stay firm,'' Mr McIntyre said.
Shareholders have until September 17 to respond, which is about a week before KMD delivers its full year accounts. KMD's shares were trading down slightly at $1.64 yesterday.
''While some aspects of the offer from BGR are compelling, we expect the scrip heavy component of the offer to make it difficult for many investors to accept at these levels,'' Mr McIntyre said.
KMD's board responded yesterday, saying the offer was ''inadequate'' and did not reflect underlying value, and urged shareholders to reject it.
