Analysts: Cathexis must increase ISG offer for takeover to succeed

摘要

Analysts have warned US investor Cathexis it is likely to fail in its drawn-out battle to acquire ISG, unless it ups its offer by at least 16% to £2 a share, equivalent to £99m in cash. ISG's board rejected Cathexis' increased offer - of £1.71 a share, or £85m - last Thursday, arguing it "continues to undervalue ISG and its future prospects". Shareholders have until next Wednesday (17 February) to respond to the increased offer. Cathexis'original offer, made in December, was for £1.43 a share, or £71m in cash.