The takeover battle for control of the Canadian listed marketing group Cossette came alive yesterday when Cosmos Capital - lead by Cossette’s co-founder and former vice chairman François Duffar - made a formal unconditional cash offer of Canadian$5.25 for each of the company’s shares that are currently listed on the Toronto stock market.
That would value the company at nearly $88 million now that the special shares previously held by chief executive Claude Lessard and fellow director Pierre Delegrave have also been converted into listed shares.
The first closing date for acceptance of the Cosmos offer is 7 December. Holders of about 37% of Cossette’s listed shares are reported to be committed to the Cosmos offer (and any further increase in the offer) unless it is eventually outbid by another company.
Cossette has responded by saying it will consider the offer in accordance with its obligation to maximise value to shareholders (see also Cossette auction rumbles quietly on). Meanwhile the board recommended shareholders should defer making any decision until it has had an opportunity to fully review the Cosmos offer, compare it to the results of its strategic review process and make a formal recommendation as to the merits of the offer. Cossette added that all the written expressions of interest it had already received from potential acquirers were “financially superior” to the Cosmos bid. Doubtless this news encouraged the price of Cossette shares to rise to $5.90 by close of trading yesterday.
Cossette's UK operations include Miles Calcraft Briginshaw Duffy, Elvis Communications, Band and Brown, Dare Digital and Identica.
© Fintellect Ltd
Cossette, the Canadian listed marketing group under siege from a company headed by its co-founder and
BOB WILLOTT
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