Cerebos Pacific says it may "just walk away'' from its takeover bid for New Zealand-listed Comvita.|
Singapore-based Cerebos had originally offered $2.50 a share for the company specialising in health and skincare products derived from manuka honey.
Comvita has steadfastly opposed the bid, and its independent directors said a valuation by independent adviser Grant Samuel put the value of the its shares at between $3.40 and $4.
Cerebos' local chief executive George Crocker said the independent report was "not credible at all'' and if it raises its offer, it will not be within that range.
Te Puke-based Comvita has forecast a normalised profit of $7.3million to $8.2m and sales of $91m to $95m for the year ending March 31.
Its shares closed on Monday at $2.95.
Crocker told a news conference that Comvita was "not a company that we are prepared to buy at any cost".
He said Cerebos would make an announcement in the week to come as to its plans.
Comvita has suggested that others could be interested in the company, but Crocker said: "If another party is interested, I don't know what they are waiting for."
Cerebos has until December 7 to decide whether it will extend its offer or let it lapse.
"Our analysis tells us that the range of $3.40 to $4.00 a share provided by the independent adviser Grant Samuel and Associates is not credible", Crocker said.
"We also believe that the market is telling us the same thing with the current share price below $3.00," he said.
"In our view it is not realistic to expect that anyone is going to offer $3.40 a share for Comvita, based only the current year's earnings forecast, which is that it may not achieve and which may not be sustainable in the future," he said.
Crocker said Cerebos may abandon the bid, or look at acquiring another player, or going it alone under its own "BRANDS" banner.