The Perpetual Limited (ASX: PPT) share price is pushing higher on Thursday.
In morning trade, the fund manager's shares are up 2.5% to $29.84.
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Why is the Perpetual share price rising?
Investors have been buying Perpetual shares today after the company revealed that it has received an improved takeover approach.
According to the release, Perpetual received a further unsolicited conditional, non-binding indicative proposal to acquire all its shares on issue from the consortium comprising BPEA Private Equity Fund VIII and Regal Partners.
Under the revised indicative proposal, the consortium is offering $33.00 cash per share, a 10% increase from the original indicative proposal of $30.00 cash per share.
However, Perpetual's board has considered a number of factors, including value, high conditionality, transaction and execution risks. After taking all this into account, it has determined once again that the consortium's revised indicative proposal is not in the best interests of its shareholders and has therefore rejected the offer.
In fact, it believes the offer "continues to materially undervalue the company." So, it appears that a significantly improved offer will need to be tabled to get a deal over the line.
For now, Perpetual's board advises shareholders to take no action. It will keep shareholders informed in accordance with its continuous disclosure obligations.
Pendal deal still on
In other news, Pendal Group Ltd (ASX: PDL) has responded to speculation that the above approaches could impact Perpetual's proposed takeover.
Pendal isn't planning to let that happen and is pushing ahead with a scheme meeting this week despite Perpetual requesting a delay. It commented:
Pendal wishes to update its shareholders and the market that despite requests by Perpetual for a delay, it intends to proceed to the first court hearing for the Scheme this week and to seek orders convening the scheme meeting and for despatch of the Scheme Booklet to shareholders, with a scheme meeting to occur in mid-December 2022.
Pendal notes that while the Scheme Implementation Deed permits Perpetual to engage with another proposal, it does not permit Perpetual to terminate or otherwise abandon the Scheme in order to pursue a proposal. For clarity, the Deed does not preclude Perpetual responding to a proposal, but any resulting transaction can only be implemented in circumstances where the Scheme is accommodated. Any speculation to the contrary is inaccurate and contrary to a certain and well-functioning market for corporate control.
