LONDON (Feb. 4)—British Vita P.L.C. has rejected a buyout bid from Texas Pacific Group, a U.S. private equity group, calling the $4.36 per share bid "substantially undervalued."
Texas Pacific, however, looks set to raise its bid, putting Vita management under severe pressure.
The price of a British Vita share soared nearly 20 percent this week when news of the bid was disclosed, reaching a high of $4.34 per share, just below Texas Pacific's bid, and valuing the company at about $820 million.
British Vita said the indicative offer it had received "substantially undervalued the company and its prospects."
Fort Worth, Texas-based Texas Pacific, which last year bought thermoplastic elastomer producer Kraton Polymers L.L.C., was said to be preparing to raise its bid for the polyurethane foam, fiber and polymeric product maker, which has operations across Europe and in North America and generates about $1.3 billion in annual sales.