Aim-listed Deutsche Land has rebuffed a second takeover proposal from its former management company head as ‘inadequate’.
In a Stock Exchange announcement this morning, Deutsche Land said that it saw ‘no basis to continue discussions with Prostar’.
Prostar, headed by Jonathon Elkington, the former head of Deutsche Land’s management company, made an offer lower than 15p a share in November which Deutsche Land deemed ‘inadequate’.
Deutsche said on 4 February Prostar had stated its offer would be less than 15p a share, but it could not place a value on the shares until it had completed its due diligence.
However, Deutsche said that it was approached on Monday by Prostar’s advisors with a further proposal in which it would not pay less than 8p a share – compared to its present trading price of 6p a share.
Deutsche deemed that this offer was also ‘inadequate’.
It said: ‘It is the board’s view that an indicative offer of 15p a share is inadequate and therefore that none of Prostar’s proposals are in the best interest of shareholders and therefore that they do not represent a basis upon which to continue discussions with Prostar.’