Bonmarche has rejected Philip Day’s offer for £5.7m takeover for the womenswear retailer, they claimed it “materially undervalues” the retailer.
Business tycoon Day who is behind the Edinburgh Woollen Mill Group in April acquired more than half of the company’s shares through holding company Spectre, triggering a mandatory takeover bid.
Day bought 26m share that represents 52.4% of the company.
No Friday shareholders were told by the retailer to “take no action” as the offer made is too low.
Rejecting Day’s overtures, the firm said, “In view of Spectre’s position as the majority shareholder in Bonmarche, the board has sought to engage with Philip Day to discuss the future plans for the business for the benefits of all stakeholders.
“The board will be writing to shareholders with its formal response to the mandatory cash offer once the offer document has been posted by Spectre.
“In the meantime, Bonmarche shareholders are strongly advised to take no action in relation to their Bonmarche shares.”