May 31 CVTech Group Inc, which provides
services to electric utilities, said it had received and
rejected multiple takeover offers from a New York Stock
Exchange-listed electrical contractor, after its second largest
shareholder wrote to investors that the company was withholding
Guy Aubert, who resigned as CVTech's director on Jan. 24,
issued a letter to shareholders on Monday that detailed two
previous takeover bids. The letter was made public on Thursday.
CVTech's shares rose 20 percent to C$1.48 on Friday before
trading was halted.
The company said the offers were inferior according to a
committee it set up in 2012 to review such alternatives.
The first offer of C$1.65 per share in January represented a
45 percent premium to the stock's previous closing, while the
second offer in March, at C$1.95 per share, was at a 70 percent
premium, Aubert said in his letter to shareholders.
"At the very least, shareholders should have been informed
and allowed to decide whether or not the company should be
sold," Aubert said, terming the offers "significant".
The company also said on Friday it received the first
takeover bid from the electric contractor in December 2011. The
suitor withdrew the offer after CVTech decided to solicit offers
from other interested parties, it added.
CVTech, which has a market value of C$88.18 million ($85
million), provides construction and maintenance services to
public utilities and heavy industrial markets in Quebec, Ontario
and eastern United States.
Aubert also urged the shareholders to reject several bylaw
changes at CVTech's annual meeting on June 4. Gestion G. Aubert
Ltée, the firm controlled by Aubert, had attempted to replace
the board last year.