New Hope Corporation Ltd (ASX:NHC) has had its takeover bid for Northern Energy Corporation Ltd (ASX:NEC) rejected by the target's board.
Last week New Hope made an offer for the coal explorer of $1.50 per share, valuing Northern Energy at around $193 million.
Northern Energy says the unsolicited offer undervalues the company and does not account for its growth assets or project pipeline.
Last week New Hope's chairman Robert Milner said the offer provided value in what had been a volatile period for Northern Energy's shareholders.
However, Northern Energy's chairman Dr Chris Rawlings has branded the offer as inadequate and advised shareholders to take no action in relation to New Hope's offer.
New Hope Corporation's profit fell to $183.83 million in the year to 31 July 2010.
NHC Price at posting:
$5.26 Sentiment: None Disclosure: Held
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