-- Atlas Arteria's (ASX:ALX) board recommended shareholders reject an unsolicited takeover offer from IFM, saying it materially undervalues the company, according to a Wednesday filing with the Australian bourse.
IFM's offer to acquire the remaining shares of Atlas at AU$4.75 each in cash "is too low" and subject to extensive conditions that might never be satisfied or waived, the company said, adding that some conditions "are already incapable of being satisfied."
The offer is also opportunistic in its timing, and came just five days after Atlas issued a right of first offer notice in relation to its interest in the Chicago Skyway toll road, the company said.
Atlas further pointed to structural deficiencies with both the offer and the disclosure in the bidder's statement, saying that IFM has refused to adequately address these issues.
"The offer is designed to accelerate IFM's creep to effective control of Atlas Arteria without paying a fair premium to securityholders," the company said.