Takeover target telco TeamTalk's board has rejected Spark's takeover proposal, telling shareholders alternative offers may resurface with better, revised valuations.
Spark earlier this week launched a conditional takeover proposal, the 80c per share offering shareholders an almost 80% premium on the 45c the stock had been trading at. The shares rocketed to 75c on Tuesday, the day of the announcement, and closed down 1c at 74c yesterday.
TeamTalk chairman Roger Sowry labelled the Spark offer ''hostile'' and recommended shareholders not sell their shares, or enter into any commitment to do so.
''Based on discussions with other parties, alternative offer approaches may resurface at revised valuations,'' Mr Sowry said.
The sale of parts of TeamTalk could potentially deliver value to shareholders ''significantly in excess'' of 80c per share.
He said it was in no way certain Spark would proceed with the offer, or the 80c on offer, and that the offer terms included more than 30 conditions, some of which were beyond TeamTalk's control.
TeamTalk's board last year rejected a 60c-per-share indicative offer from Spark, describing it as ''opportunistic''.
Mr Sowry said TeamTalk had also received other ''indicative offer approaches'' for parts of its business, which comprises mobile radio services, CityLink fibre services (mainly in Wellington) and its rural internet provider Farmside, with about 15,000 customers.
''These various approaches highlight the strategic nature of TeamTalk's assets and operations and the potentially higher value which may be available,'' Mr Sowry said.
Despite the rejection, TeamTalk would allow Spark to undertake ''limited due diligence'', which it had requested in the takeover offer, he said.
In the meantime, TeamTalk would work with its banking advisers on options to maximise value for shareholders, including the current management plan, the sale of all or parts of TeamTalk and the Spark offer, Mr Sowry said.
