more;
Reuters, Thursday, September 18, 1997 at 03:15
SYDNEY, Sept 18 (Reuter) - Water filtration company Memtec
Ltd said on Thursday a US$30 per share takeover bid by U.S.
Filter Corp (NYSE:USF) for Memtec was opportunistic and woefully
inadequate and would be vigorously opposed.
"While the directors are awaiting full details of the offer
they wish to advise shareholders that the announced offer is
opportunistic and woefully inadequate," Memtec said in a
statement responding to the bid, which values the company at
US$330 million.
Memtec's shares closed up 63 cents at US$24.63 in the United
States on Wednesday. In Australia, its shares closed A$11.10
higher at A$44.00.
U.S. Filter's offer was at a 17.9 percent premium to the
closing price and was 25.8 percent below Memtec's 12 month high
of US$37.75 reached on October 28 last year, Memtec said.
Memtec also pointed to the 50 percent premium paid by Pall
Corp (NYSE:PLL) for Gelman Sciences in a sucessful merger (AMEX:GSC)
last year.
Pall trumped a bid by Memtec itself for Gelman, paying the
equivalent of US$33 a Gelman share in a stock swap deal that
valued Pall at over US$250 million.
"Additionally, the offer values Memtec at approximately one
times current turnover while Gelman sold for more than 2.5 times
turnover," Memtec said.
"Memtec's share price has been equal to or exceeded the
offer price on 72 days during the last 12 months and given the
growth rates referred to below, can realistically be expected to
do so again in the foreseeable future."
Memtec said it was a business growing quickly and earnings
per share had grown 57 percent compound between 1994 and 1997.
"Directors advise shareholders that the unwanted bid will be
vigorously opposed and urge shareholders to carefully consider
their position before accepting U.S. Filter's inadequate
valuation."
Memtec reported revenues of US$243.61 million in the year to
June 30, 1997 and net income of US$7.5 million.
-- Sydney Newsroom 61-2 9373 1800
email address: sydney.newsroom@reuters.com
Copyright 1997, Reuters News Service |
