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Pacific Says MediaRing Offer Inadequate
Friday May 26, 10:12 am ET
Pacific Internet Board Calls MediaRing's $8.25 Per Share Offer 'Inadequate'
NEW YORK (AP) -- The board of directors of Pacific Internet Ltd. on Friday recommended shareholders reject an $8.25 per-share tender offer from Singapore telecommunications company MediaRing Ltd. because it's too low.
MediaRing announced the tender offer for the shares of Pacific, a Singapore-based Internet communications company, in February. The offer stands through June 12 and valued the shares at a 27.7 percent premium based on the closing price three days before MediaRing announced the offer.
In a letter to shareholders, Pacific's board called the price "inadequate" and said it "does not fully reflect the value of the company." The company is poised to profit from "attractive growth opportunities in key markets," the board said, a value not reflected in the tender price.
MediaRing sees value in the company that the market has yet to recognize, the board said, making the offer "opportunistic."
Pacific had 13.4 million shares outstanding as of May 16. As of last week, MediaRing owned about 4.8 percent of Pacific's shares.
Shares of Pacific rose 7 cents to $8.25 in trading on the Nasdaq.