Germany's Uniper SE (UN01.XE) on Tuesday recommended that its shareholders reject the 8.05 billion euro ($9.46 billion) takeover bid from Finnish energy provider Fortum Oyj (FORTUM.HE).
Uniper's management and supervisory boards said they don't think Fortum's offer is in the company's best interests. The bid doesn't reflect Uniper's true value or propose any strategic benefit, the company said.
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"The offer document also does not clearly state what Fortum's true intentions are," added Klaus Schaefer, Uniper's chief executive.
The board said that it wasn't satisfied with Fortum's position on the future of Uniper's facilities and employees.
Uniper was formed when German utility E.ON SE (EOAN.XE) spun off its conventional energy operations.
E.ON has since committed to selling its remaining 47% stake in Uniper to Fortum.
"The company has performed exceptionally well since becoming independent, is financially sound and makes a significant contribution to the security of supply with gas and power in Europe," said Bernhard Reutersberg, chairman of Uniper's supervisory board.
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(END) Dow Jones Newswires
November 21, 2017 02:54 ET (07:54 GMT)