Teranet urges rejection of $2 billion takeover bid
Teranet three-month chart
Teranet Income Fund, the private-enterprise gatekeeper of Ontario's electronic land registry, is urging its owners to reject a $2-billion takeover by an arm of the Ontario Municipal Employees Retirement System.
“We believe that the Borealis offer of $11 per unit is financially inadequate," Teranet chairman Jon Hagan said Friday in a statement announcing that the fund's board of trustees unanimously recommended rejection.
The bidder is Toronto-based Borealis Infrastructure Management, which finds places to invest some of OMERS' $52 billion in assets.
Hagan said the deal is especially bad "considering that in June 2008 Borealis represented that it was prepared to offer $12 per unit.”
Borealis, which has been pursuing Teranet since mid-2007, did not immediately respond to questions about whether it had talked of a $12 deal.
"Superior proposals delivering greater value for unit-holders may emerge," the Teranet statement said, adding that the fund and its financial advisers are talking to other interests about possible deals.
Investors did not seem to be betting on a big improvement, however. Teranet's unit price was unchanged at $11.05 at the close of trading on the Toronto Stock Exchange.
The units were issued at $10 in 2006. Their 52-week range is $8.06 to $11.71.
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