The fifth-largest shareholder in Murray & Roberts (M&R) plans to reject a hostile buyout bid from Germany's Aton that values the South African builder at nearly $600-million.
"The offer of R15 per share is below what we believe is fair value. As a result we won't be committing to sell into this price," Brian Pyle, an analyst at Old Mutual's equity investment arm, told Reuters.
Financial services conglomerate Old Mutual holds about 5% of M&R, whose board snubbed the offer from its biggest shareholder Aton, a company owned by German investor Lutz Helmig.