The board of Australian accounting software company MYOB
has told its shareholders to resist the temptation to
accept an approximately $477 million takeover offer from Manhattan Software
The board released a statement late yesterday afternoon advising
shareholders to do nothing until the board had had time to fully
assess the offer. "This appears to be an opportunistic attempt to acquire MYOB at
a time of global economic uncertainty and share market volatility,"
said MYOB chairman Simon McKeon.
Manhattan Software Bidco, the parent of which was registered
last week in tax haven the Cayman Islands, claims
institutional investors such as Guinness Peat Group, Colonial First
State Global Asset Managemen, and Schroders Investment Management
have already expressed interest in the bid.
McKeon said that despite the turmoil in financial markets,
MYOB's balance sheet, recurring revenues and cash-flows had the
company in good stead. The company will be returning within the
range of 24 to 37 cents per share in dividends this year.
"The board will provide its recommendation in due course," said
MYOB. "In the meantime shareholders should
take no action in respect to the offer by Manhattan Software."