Property developer Stockland (ASX:SGP) has had its offer for retirement and aged care accommodation provider Aevum Ltd (ASX:AVE) rejected.
The takeover target has described Stockland's offer of $1.50 per share as inadequate, opportunistic and unsolicited.
Adding, that an independent expert's midpoint valuation for Aevum was significantly higher at $2.07 share.
Aevum's chairman Graham Lenzner says Stockland's offer fails to reflect the underlying value of the business or the strategic benefits that Aevum could deliver to Stockland.
In Stockland's 2010 financial results, managing director Matthew Quinn said while the company is maintaining a disciplined approach to capital management, Stockland is also looking to capitalise on growth opportunities.
Stockland reported a net profit of $478 million in 2010, a turnaround from a loss of $1.8 billion the year before.
SGP Price at posting:
$4.07 Sentiment: None Disclosure: Held
