Spotless Services, a wholly-owned subsidiary of Australian-listed Spotless Group, owns 66% of Taylors but needs 90% of the NZX-listed company to make the offer compulsory.
Taylors shares were trading yesterday at $2.18.
Craigs Investment Partners broker Chris Timms said the $2.25 a share was not realistic and provided shareholders with no incentive to accept it.
"Is the offer compelling? I don't think it is compelling enough. If they are that keen to get the business, they need to lift the offer," he said in an interview.
The company was a good operator and paid steady dividends.
With the economy picking up, the company was poised to benefit from that, Mr Timms said.
The independent directors of Taylors had unanimously recommended that shareholders accept the offer.
Spotless Services chief executive officer and director Josef Farnik said the offer price of $2.25 was final and would not be increased.
"As a result of announcing its price as final, under the Takeovers Code Spotless cannot increase the offer price."
The price was "highly attractive". representing a premium of 32% over the volume weighted average Taylors share price over the one-month period before the takeover announcement, he said.
Asked what would happen to the shareholders who held out from accepting the Spotless offer, Mr Timms said that history had shown that those shareholders sometimes did very well.
The Tranz Rail minority shareholders who did not immediately sell were offered substantially more than the shareholders who had earlier sold into the takeover offer.
That could also happen to the Taylors minority shareholders, he said.
The down side was that Spotless would have control of the company and could make changes which the minority shareholders would have to grin and bear.
However, that was already the case as Spotless had owned more than 50% of the company for several years.
• Spotless is a laundry, hospitality and cleaning contractor. Taylors is a laundry supplier to the health and hospitality industries.
