Powered by Ceros

Recommend at too low a price and the deal gets rejected outright by shareholders

Recommend at a level that shareholders don’t like so shareholders force a bump

Recommend/ welcome at a price but open door to auction process

Reject publicly but leave door open to recommend a higher offer

Reject outright without shareholders’ knowledge and risk later shareholder criticism if it becomes public

Valuation – potential consequences of different responses by directors in receipt of a takeover approach