The board says the offer is too low – the company’s share price has risen by more than a third in the last year
The board of operator group Millicom, which operates in Latin America, has formally reiterated its view that the $4.1 billion takeover bid by Atlas Investissement is too low and rejected it. Atlas already holds a 29% stake in Millicom, the financial vehicle which belongs to the founder and owner of France’s Iliad operator group, Xavier Niel.
The board rejected the offer on the grounds that the bid undervalues the group (at $24 a share) and published a detailed explanation of its conclusion. It is advising shareholders to decline the offer.
It seems likely that Niel will make an improved offer, but he’s chasing a rising star. On Monday, as the news of the rejection broke, Milicom’s share price went up another 1.6% on the Nasdaq.
In the last year, the group’s share price has risen by more than a third, from $16.72 per share to $25.81 at the time of writing.