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Campbell Brothers Ltd (ASX:CPB) has had its $136 million takeover offer for Ammtec Ltd (ASX:AEC) rejected by the mineral testing company.
Ammtec has recommended shareholders reject the revised offer as it does not represent appropriate value.
Yesterday Campbell Brothers increased its cash offer from $3.35 per share to $3.80, and changed the offer of shares to a new ratio of four Campbell Brothers shares for every 33 Ammtec shares.
Ammtec today says the new offer is not materially different from the first, and continues to undervalue its shares as well as ignoring the strong earnings outlook for the company.
Campbell Brothers have speculated that Ammtec's earnings will fall below guidance.
However, Chairman David Macoboy says the company is confident of achieving its fiscal 2011 earnings guidance and says activity is at records levels.
Campbell Brothers recorded a profit of $75.3 million for the year to 30 March 2010.
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