Boral has encouraged shareholders to reject Seven Group’s $8 billion takeover offer, saying the bid undervalues its target.
Boral on Tuesday said the off-market bid of $6.50 per share was opportunistic and offered no premium on the closing price of shares on Monday ($6.50).
Kerry Stokes’ group, which owns 23 per cent of the building materials supplier, made the offer off-market due to rules preventing Seven buying more shares at this time.
A Boral committee, which did not include Mr Stokes’ son and Boral director Ryan, unanimously recommended shareholders refuse the offer.
Seven said it would be satisfied if its offer led to 30 per cent ownership.
Its offer will be put to Boral shareholders from May 25.
Shares in Boral were higher by 1.15 per cent to $6.57 at 1121 AEST.
Shares in Seven were lower by 1.61 per cent to $20.81.