BPI dismisses Macfarlane's £92m bid

British Polythene Industries yesterday rejected a £92m takeover offer from its rival Macfarlane Group as "wholly inadequate".

British Polythene Industries yesterday rejected a £92m takeover offer from its rival Macfarlane Group as "wholly inadequate".

Macfarlane bid 250p a share for its fellow Scottish packaging group. British Polythene is the market leader in Europe for polythene products, but has been dogged by poor trading conditions. Macfarlane also makes polythene, but also provides packaging products and services. Cameron McLatchie, chairman of British Polythene said: "Macfarlane's offer is clearly entirely opportunistic. Macfarlane is trying to buy BPI at a bargain-basement price. Its offer fundamentally undervalues BPI and should be rejected outright".

Iain Macarthur, an analyst at Bell Lawrie White, said: "This would be a pretty good deal for Macfarlane, if they got it at this price, but I don't think they will. For a recommendation, the British Polythene board will be looking for an offer starting with a three."

British Polythene shares closed well ahead of the offer price, up 52.5p to 270p.