Mayflower Group Inc. said Tuesday its board turned down a $225 million takeover offer from Laidlaw Transportation Ltd. and is urging stockholders to reject it.
Mayflower called the tender offer inadequate and said it told its attorneys to ”challenge the offer in the courts and before appropriate governmental agencies.”
Canadian-based Laidlaw said it had expected Mayflower`s reaction and planned to continue its offer, which expires June 10.
”We think the offer is fair and reasonable and we have no plans at this time to alter the offer,” said Laidlaw President Michael De Groote.
Lawyers for the Indiana-based moving company advised the board ”that the Laidlaw offer raises serious legal questions,” Mayflower said.
Mayflower didn`t elaborate on what the questions were and a spokesman declined to comment further on a possible lawsuit.
”The board is exploring ways to assure the value of our shareholders investment,” said John B. Smith, Mayflower`s chairman and chief executive.
”We will work with our advisers to investigate alternatives which would provide our shareholders with added value,” he said.
Mayflower said it refused the offer based on evaluations by its financial advisers, Salomon Brothers Inc. and Smith Barney, Harris Upham & Co. Inc.
Laidlaw raised its initial $28-a-share offer to $29.25 a share last week after Mayflower`s stock price rose.
