MIDDLETON, England (March 16)—British Vita P.L.C., under siege by U.S. venture capital group Texas Pacific Group, has decided to allow the U.S. bidder to "undertake limited due diligence."
The move follows the third and latest informal bid—of about $6.53 per share on March 10—by the U.S. group, which values British Vita at about $1.3 billion. TPG initially made an offer in early February to take over the Middleton-based maker of foam, non-wovens and plastics.
Vita's board stressed it still is convinced this latest bid undervalues British Vita and cannot be recommended to shareholders.
British Vita said it is allowing TPG to look at its books, after consulting with its leading shareholders, and said it is doing this "to enable TPG to put forward an improved proposal."
Terms of access have still to be agreed between the two parties, a Vita statement said.