ISG shareholders have overwhelmingly rejected a takeover bid from Texan raider Cathexis.
The offer of 143p per share, which values the company at £71m, was accepted by shareholders representing just 1.58 per cent of the fit-out specialist’s total stock. Cathexis previously held 29.5 per cent of ISG shares.
The battle for control of the group is set to continue, however, with the investment firm opting to extend the offer by two weeks to 25 January.
ISG shares were trading at 145p this morning.
In a statement to the City today, it urged shareholders to “continue to take no action whatsoever and to ignore the offer”.
Before Christmas, the group’s board strongly urged shareholders to reject Cathexis’ offer, warning that it undervalued the company and calling it “totally inadequate”.
The board said that shareholder dividends could be at risk if Cathexis was successful in its bid for the company.
It was later forced to issue a revised statement to shareholders after falling foul of Takeover Panel rules regarding profit forecasts.
ISG recorded a £27.8m loss in 2014/15 and issued a £5m profit warning in December.