DOW JONES NEWSWIRES
Cascal NV's (HOO) board again rejected a $206 million takeover offer from Sembcorp Industries Ltd. (U96.SG), calling it "inadequate" as it "grossly undervalues" the waste-water management company.
The board, in recommending shareholders not tender their holdings in support of the $6.75 a share bid from the Singapore conglomerate, is "actively holding discussions and negotiating strategic alternatives that we hope can result in a superior transaction for stockholders of Cascal," the company said in a statement.
Sembcorp formally launched its offer May 21. Before doing so, it had agreed to buy Biwater Investments Ltd.'s 58% stake. Cascal said Tuesday that it believed the sale was a result of Biwater's financial distress and pressure from its financial advisor HSBC Holdings PLC. (HBC). Biwater owned Cascal at the time of its 2008 initial public offering.
Cascal shares were up 1.7% to $6.66 in recent trading. The stock has risen 23% this year.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037; firstname.lastname@example.org;