SThree Rejects Circle8's Takeover Bid as Undervaluing Company
CIRC sits 49% above its 52-week low of $0.414.
Summary
SThree unanimously rejected Circle8's unsolicited all-cash takeover approach, saying it significantly undervalues the British recruiter. The rejection is a setback for Circle8's expansion plans, which it said would create a nearly $3 billion revenue platform. Under UK Takeover Code, Circle8 must announce a firm intention to make an offer or walk away by October 7. SThree shares fell 3.7% on the news. This follows Circle8's preliminary approach reported on September 9, and the company's recent financial struggles, including going concern doubt and a $60.4M settlement loss, raise questions about its ability to finance a deal.
At the time of this announcement, CIRC was trading at $0.62 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $65.6M. The 52-week trading range was $0.41 to $5.20. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.