Plus Markets has turned down a rival bid for small cap exchange Plus SX from Gulf Merchant Bank in favour of an agreed £1 cash offer from interdealer broker Icap.
GMB made its advances public late yesterday, confirming that it had made a "revised offer" for Plus SX. While not revealing terms, GMB claimed its offer was "substantially in excess of that announced by Icap".
The company further committed to investing more financial resources into the small cap market operator, enhancing governance and reinforcing its risk management controls.
In a statement released to the Stock Exchange this morning, the Plus Markets Board dismissed the bid, claiming that the terms put forward are such that the GMB proposal is "materially less attractive" in terms of net financial benefit to the group's shareholders.
It also called out GMB for "inaccuracies" in its press statements, saying that the GMB approach is not a "revised offer" as previous discussions between the two did not result in an "offer" being made. "GMB withdrew its initial proposal of its own accord and shareholders in the group were not able to consider that proposal," says Plus.
Plus Markets announced plans to wind down its ailing business in mid-May after failing to find a suitable takeover partner.