Tavistock Investments PLC (LON:TAVI) said it had received letters of intent from investors holding 24.88% of its shares saying they will reject the all-share offer from TEAM PLC (LON:TEAM).
Recently-listed TEAM has made two approaches, the latest of which was a proposed offer of 1 for 35 that values each Tavistock share at 2.43p compared to a market price of 2.65p currently.
Tavistock added the letters of intent are non-binding but along with the board members' 16.01% holding makes it 40.9% of shareholders who would not accept the current proposal.
TEAM, for its part, has said it has non-binding letters of intent and an irrevocable undertaking from investors speaking for 15.03% of Tavistock’s share capital.
“The Board of Tavistock remains of the view that the approach made by TEAM is without merit,” said its statement today.
Previously, Tavistock’s board had said the offer significantly undervalues the company; had no commercial logic and was being made in illiquid shares.
Under stock exchange rules, TEAM has until 20 April to make a firm offer or walk away.