blackstone offer rejected by spotless!

Dear Long Suffering Valad Shareholders,
This is how its done !!
If the Spotless Board can reject Blackstone's low ball initial offer as "significantly undervaluing the company", then why the hell can't Valad's spineless board do the same ???


Spotless rejects Blackstone offer.

Published 9:18 AM, 9 May 2011

Reuters

US private equity firm Blackstone has made a conditional bid for cleaning and maintenance company Spotless Group, sources familiar with the deal have said.

Spotless earlier said it had rejected a bid from a unnamed private equity firm which valued the company at $657 million.

At 1216 AEST, Spotless shares surged 13.55 per cent to $2.22 against a benchmark index up 0.8 per cent.

In the company's statement announcing the approach, Spotless said a private equity player had offered to acquire 100 per cent of Spotless shares via a scheme arrangement for $2.50 per share in cash.

"The Spotless directors have reviewed the proposal in detail and believe that it does not reflect the fundamental value of the company in the context of a change of control," a Spotless statement said.

The directors said they had no intention of taking any further action in relation to the conditional offer.

Spotless is being advised by Goldman Sachs and Clayton Utz.