The Integral Diagnostics Ltd. board asked shareholders to reject Capitol Health Ltd.'s offer to acquire the company.
The recommendation comes almost two months after the Australian diagnostic imaging services provider appointed financial and legal advisers to assess Capitol Health's takeover offer: 6.9 of its shares and 36 Australian cents in cash for every stock of the target company.
Integral Diagnostics said Capitol Health's cash plus stock bid did not "reflect the inherent value" of the company and raised concerns over the diagnostic imaging facilities operator's ability to "manage a business that is substantially larger and more complex."
Capitol Health's offer requires that at least 90% of Integral Diagnostics shareholders vote in favor of it. However, 32.88% of Integral Diagnostics' shareholders have already indicated they do not plan to accept the offer.
Integral also reported that board members and executive directors Sally Sojan and Chien Ho will resign as radiologists from the company if Capitol is successful in acquiring more than 50% of the shares.
