The board of Cirrus Networks has pleaded with its shareholders to reject what it described as a hostile takeover offer by Webcentral Group, calling on them to “stop the theft”.
The board of Perth-based IT services firm Cirrus Networks has pleaded with its shareholders to reject what it described as a hostile takeover offer by Melbourne-based Webcentral Group, calling on them to “stop the theft” and “save the company”.
This morning, the company released a statement to shareholders claiming Webcentral’s offer price was unreasonable and debunking statements it alleged Webcentral made to “mislead” and “manipulate” Cirrus’ shareholders.
Cirrus has been fending off Webcentral since August, when the company offered to buy the firm for 3.2 cents per share; valuing Cirrus at less than $30 million.
It also vowed to remove three of Cirrus’ directors, if the takeover bid was successful.
But Cirrus claims an independent expert found the offer fell short of its assessed valuation range for Cirrus’ shares, prompting the board to unanimously recommend shareholders vote against the proposal and subsequent resolutions.
Today, the board reiterated those calls, telling shareholders it did not believe Webcentral to have the company’s best interests at heart.
“Cirrus shareholders have everything to lose and nothing to gain by supporting Webcentral in what the Board considers to be a ruthless attempt to control Cirrus,” the board warned.
“The Cirrus board considers that Webcentral’s behaviour throughout the bid process has appeared self-serving, potentially misleading, and underscores the Cirrus directors’ well-founded concerns that Webcentral is seeking to gain control of the Cirrus board without offering shareholders a suitable premium for control.”
Shareholders are expected to make a decision on the matter at a meeting on October 15.