(Alliance News) -Â Creightons PLC on Tuesday said a preliminary takeover approach it made to beauty, personal care and life science products firm Innovaderma PLC last week was "unequivocally rejected".
Innovaderma shares were up 11% at 47.00 pence in London on Tuesday, while Creightons shares were down 1.7% at 64.87p.
Consumer goods manufacturer Creightons said it approached the Innovaderma board last Tuesday about a possible all-share offer for the company. This was "unequivocally rejected" on Friday without giving Creightons "the benefit of any further discussion", it said.
"The board of Creightons continues to have a serious interest in the possibility of a combination of the two businesses," Creightons said in a statement on Tuesday as it published the text of its letter to the Innovaderma board.
The letter states that the company's "current thinking is that a ratio of 2 Creightons ordinary shares for every 3 Innovaderma ordinary shares would be an appropriate basis". Based on Creightons's closing price of 66p on Monday, this would value Innovaderma shares at 44p each, a premium of 3.5% to their Monday closing price of 42.5p.
Creightons has until March 2 to either announce a firm intention to make an offer for Innovaderma or walk away.
Innovaderma had issued no response early Tuesday.
By Lucy Heming;Â lucyheming@alliancenews.com
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Creightons (CRL)