XP Power Ltd (LSE:XPP) has rejected the third “unsolicited approach” from US energy company Advanced Energy despite the bid placing a knock-out 68% premium on yesterday’s closing price.
London-listed XP Power called the bids “a series of highly conditional, opportunistic, indicative proposals from Advanced Energy”.
According to a statement released by XP Power, the board “carefully” considered the latest offer together with its financial adviser but “unanimously concluded that the indicative proposal fundamentally undervalues the company and its prospects”.
The company's shareholders are strongly advised to take no action on the indicative proposal,” said XP Power.
Advanced Energy, in contrast, said the offer valuation “may not be achieved should XP Power remain as a standalone company. Furthermore, XP Power shares trade at low levels of liquidity which continue to prevent shareholders looking for an exit in full to monetise their position”.
XP Power shares flew 48% higher following Advanced Energy’s latest proposal.