Neptune Orient board urges backers to reject Temasek bid.

(From Lloyds List)

Byline: Adviser HSBC says shareholders confident of NOL's long-term prospects should sit tight, writes Marcus Hand in Singapore

THE directors of Neptune Orient Lines have recommended that shareholders should remain confident of its long- term prospects and should not accept a US$1.6bn takeover offer by Temasek Holdings.

Parent and Singapore government investment arm Temasek made a S$2.80 (US$1.63) per share mandatory bid for all the shares it did not own in NOL after its shareholding breached the 30% level on August 3 this year.

Independent financial advisers Hong Kong and Shanghai Banking Corp described the offer price by Temasek as 'fair but not compelling, from a financial point of view'.

Both HSBC and NOL's board of directors offered the same advice to shareholders that: 'Shareholders who are confident of the long-term future prospects of the company and who believe that they would be able to realise a greater value from their shares in the future should retain their shares in the future.'

Even shareholders who want to realise all or part of their investment in NOL were recommended to consider selling on the open market if they could obtain a higher price. Although NOL's shares had fallen S$0.02 yesterday afternoon they were still trading at S$2.83, a S$0.03 premium to the offer by Temasek. In a list of factors against the offer price it was noted that at the last date before the advisory document was issued NOL's shares were trading at a ...