UK back office technology vendor Rolfe & Nolan has rejected an indicative £12.5 million cash offer for the company from US-based onExchange.
The privately-held US company says it approached the board of Rolfe & Nolan by letter on 29 July 2002 with a conditional, indicative all-cash offer of 85 pence per Rolfe & Nolan share.
This represented a premium of 50% over the then share price of 56 pence and valued Rolfe & Nolan at approximately £12.5 million.
Rolfe & Nolan's share price has since risen to 78 pence on the back of takeover speculation, consequently driving down the value of onExchange's initial offer.
Commenting, Richard Jaycobs, chairman and chief executive officer of onExchange says: 'We felt it was important, in light of public speculation and the recent rise in Rolfe & Nolan's share price, to clarify the current relationship between onExchange and Rolfe & Nolan, and the recent history between the two companies."
He says onExchange is still considering its options in relation to whether it will make a formal offer for Rolfe & Nolan.