UPDATE: CIP Merchant rejects latest "unattractive" CFE takeover bid

CIP Merchant Capital Ltd - Guernsey-based investment company - Says latest "hostile" offer by Corporation Financiere Europeenne SA still undervalues company. CIP says: "The board, having consulted with Strand Hanson as to the financial terms of the final offer, continues to believe that the final offer still undervalues CIP and its future prospects. Accordingly, the directors unanimously recommend that shareholders reject the final offer." Company also notes that at 1.3%, current acceptances level for CFE offer is low, demonstrating the new offer is "similarly unattractive". CFE lifted its takeover offer by 9.1% to 60 pence per share from 55p. It said the cash offer, worth GBP33.0 million in total, is final. CIP has a GBP33.3 million market capitalisation.

Current stock price: 60.50, up 6.1% on Wednesday

12-month change: up 20%

By Eric Cunha; ericcunha@alliancenews.com

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