Ammtec rejects Campbell's takeover

Ammtec has stepped up its campaign against a takeover bid by Queensland based Campbell Brothers.

Shares in the metallurgical and minerals testing consultancy were up slightly this morning after the board released a target statement.

In a letter Chairman David Macoboy said that 20.3 per cent of shareholders have agreed in a non-binding letter intend to reject the offer by Campbell.

The directors who hold 3.8 per cent of company shares also plan to reject the offer.

In the letter, Mr Macoboy outlined 6 reasons the directors believe the takeover should be rejected. These included concerns that the offer undervalues Ammtec Shares; it doesn't reflect the strategic value of Ammtec to Campbell Brothers; and that the offer is highly conditional and uncertain.

Campbell Brothers has offered $3.35 per Ammtec share, with a scrip alternative of 2 Campbell Brothers shares for every 17 Ammtec shares.

At 10.10am Ammtec shares were up 29 per cent or 1 cent at $3.50.