A shareholder of German roof tile maker Braas Monier (BMSA.DE) has supported the company's rejection of a takeover offer by U.S. group Standard Industries [GAFCO.UL], saying the bid significantly undervalued the German firm.
"(We) have identified Braas Monier as a company that is dramatically undervalued in the public equity market," shareholder Lucerne Capital Management, which holds 5 percent of Braas Monier's shares, said in a letter to the company's management board seen by Reuters.
In mid-September, family-owned Standard Industries made its offer of 25 euros ($27.30) in cash per share, valuing Braas at $2.1 billion including debt.
But the German group opposes the offer, saying it does not include a premium and significantly undervalues the company and its future prospects. It has called on its shareholders to reject the deal.
Lucerne said it saw the fair value of shares in Braas Monier at least 35 euros per share, adding it believed the company was able to achieve that value on a stand-alone basis.
Braas Monier shares traded at 26.34 euros at 0900 ET on Friday. ($1 = 0.9157 euros)
Source Reuters reporting by Arno Schuetze; Writing by Tina Bellon; Editing by Maria Sheahan