Data group Recall has rejected as inadequate a $2.225 billion takeover offer from the big US logistics and records management company Iron Mountain.
The offer is made up of $404 million cash (18%) and $1.821 billion in Iron Mountain shares (82%).
The board of directors of Recall say the offer doesn’t reflect the value of the company nor the potential for substantial synergies.
Recall, a demerged business from logistics group Brambles, says a combination with Iron Mountain has the potential to generate substantial synergies of US$250 million a year.
“The Board would be open to discussions with Iron Mountain if it were to put forward a proposal that fully reflects the significant potential value creation, and more equitably shares that value with Recall shareholders,” Reccall’s board said.
Recall has appointed BofA Merrill Lynch and UBS AG as its financial advisers.
Its shares last traded at $6.40 on Friday, up 1.56%. The company’s share price has increased 27% since late September when takeover rumours started.