Toronto Merchant Bank C.A. Bancorp Rejects Maxam Offer, Bid Extended
Bidder for Toronto-based merchant bank C.A. Bancorp Inc. increased its offer to $1.45 per share in cash. Maxam initial offer per share criticized and called opportunistic and financially inadequate.
Bidder for the publicly traded Toronto-based merchant bank C.A. Bancorp Inc. (TSX:BKP) increased its offer to $1.45 per share in cash.
"The increased offer price represents a premium of approximately 43.5 per cent over the volume weighted average trading price of C.A. Bancorp's common shares over the 30 trading days immediately prior to Dec. 3, 2009, the day Maxam disclosed its intention to make the offer," so stated by the company.
As pointed out by the company, the 43.5 per cent premium exceeds the premiums paid in recent similar unsolicited transactions involving Canadian corporations or trusts.
C.A. Bancorp criticized the original Maxam offer of $1.22 a share valuing the company at $32.6 million. C.A. Bancorp also called the bid "opportunistic” and "financially inadequate."
It urged shareholders not to tender to the Maxam offer and stated on Monday that it had "non-binding expressions of interest" from a number of parties.
An alternative asset manager is what Vancouver-based Maxam calls itself, which invests in and run private equity investments and other alternative assets.
C.A. Bancorp is a publicly traded merchant bank focused on investments in small-and middle-capitalization private and public companies, with importance on the industrials, infrastructure, financial services sectors, and real estate.
Tuesday on the Toronto Stock Exchange, the shares were down six cents of 4.29 per cent at $1.34.
Unless otherwise withdrawn or extended, Maxam Opportunities Fund Limited Partnership and Maxam Opportunities Fund (International) Limited Partnership also announced Tuesday that they will extend the offer until February 2, 4 p.m. Vancouver time.
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