The value of Alterian, a UK supplier of marketing software, soared by more than a quarter yesterday after it rejected a takeover approach from SDL, a maker of translation software.
Alterian said it had received an indicative offer from SDL at 80p a share on Friday – a 40.4 per cent premium to the closing price the previous evening – which values the company at about £50m.
Alterian's board said the offer "significantly undervalues Alterian, based on both the company's current position and future prospects', and that it "rejected unequivocally the possible offer". Management emphasised it was currently delivering the "business transformation", including "substantial" cost savings.
Shares in Alterian jumped by 17.5p, or 27.6 per cent, to 81p yesterday.
SDL said in a statement there was "strong strategic fit" between SDL and Alterian. It believes that "international capabilities, existing customer relationships, track record of acquiring and growing software businesses, together with the breadth and scale of SDL's business, provide a strong platform to maximise the potential of Alterian's business".
But SDL said there could be "no certainty that an offer for Alterian will be forthcoming".