LONDON (Alliance News) - Shares in Bond International Software PLC rose on Friday after the company's board said it will not recommend the potential takeover offer from Constellation Software Inc, as the company begins considering other offers.
Bond International shares were up 8.5% to 108.0 pence per share on Friday morning.
The London-listed recruitment software company received an offer from Constellation worth 105.0 pence per share, valuing Bond International at around GBP44.2 million, on June 3.
Since then, shares have risen by more than 23% and Bond International's market capitalisation on Friday morning was hovering above the value of the possible offer from Constellation, at GBP44.9 million.
On Friday, the board of Bond International said the preliminary offer from Constellation "fails fully to reflect the fair value" of the business, stating it would not recommend a firm offer of that amount.
Constellation has until the first day of July to make a firm offer or walk away from the possible deal, but the unanimous rejection from the Bond International board will dent the hopes of any deal being completed.
Canadian-listed software provider Constellation, its subsidiary Trapeze ITS Luxembourg SARL, and its President and Chairman Mark Leonard together hold a 29.6% stake in Bond International.
Bond International is conducting a divestment strategy, hence the possible sale of the business, but has already managed to offload one of its units after selling Strictly Education Ltd for GBP11.3 million recently.
On Friday, the board said it had received "multiple offers" for other operating divisions and said it has entered into exclusivity agreements ahead of negotiations about selling the recruitment software division and the HR and payroll software and services unit - which seems to be a more attractive proposition than that offered by Constellation.
"The board has carefully considered this proposal. The board unanimously believes that given the status of negotiations regarding the sale of the recruitment software division and the HR and payroll software and services division the proposal is not at a level that adequately represents fair value for shareholders as a whole," said Chairman Martin Baldwin.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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