Toronto - Shares of Schneider Corp slipped on Friday after its board of directors said it would make no recommendation on a sweetened bid by suitor Maple Leaf Foods Inc.
Schneider's class A shares fell $0.25 to $24.75 in light trading, after its board said late Wednesday, that it has decided to make "no recommendation in respect of the revised Maple Leaf offers."
The board made the decision after learning that the Schneider family, which controls 75 percent of the common shares, opted to support an earlier C$170 million offer from Norfolk, Va.-based Smithfield Foods Inc.
The family's decision comes despite a superior hostile takeover bid from rival meat processor Maple Leaf Foods, which sweetened its bid to $29 a share or 1.767 Maple Leaf shares) from $22 (or 1.35 common shares on December 23 for all the common and class A shares outstanding.
However, the Schneider family refused to accept the offer noting that it "irrevocably agreed to deposit its shares under the offers to be made by Smithfield."
The sweetened bid from Maple Leaf was vsited and not withdrawn, as the Schneider family holds 75 percent of the fully diluted voting shares.
Schneider's board said it will make a recommendation on the Smtihfield bid once it has received and reviewed the offer.
Maple Leaf stock was down 0.30 to 15.50 in thin trade of 703 shares.
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