Crane rejects revised Fletcher Building bid

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Directors of ASX-listed building and industrial products company Crane Group have rejected a revised takeover offer from New Zealand's Fletcher Building, and is suspending its dividend reinvestment scheme to ensure the highest possible cash payout in the fortcoming interim dividend.

Fletcher was obliged to increase the cash component of its offer for Crane shares by A4 cents, to A$3.47 a share, after the Fletcher share price fell following the hostile bid.

The bid still values Crane shares at A$9.35 apiece.

Among the reasons given for rejecting the bid was that the "offer price will be reduced by the amount of any dividend declared or paid by Crane Group, including the 2011 interim dividend expected to be announced shortly."

The company's strong financial position allowed the move.

Documentation from both Fletcher and a target company statement from Crane should be in shareholders' hands by Jan. 31, directors said.

Crane shares rose 0.75 per cent to in ASX trading today to be nine cents above the offer price at A9.46, while dual-listed Fletcher was trading unchanged at NZ$7.78 on the NZX.