Singaporean internet services provider Pacific Internet (PacNet) has requested clarification from MediaRing over a possible extension of its USD127.8 million takeover bid. PacNet is reported to have queried the 10 July expiration date set by MediaRing in its revised USD9.50 per share offer, pointing out that under local law, shareholders who do not currently want to accept the offer should be given the opportunity to change their minds during the extension period.
Earlier this week PacNet advised its shareholders to accept MediaRing’s revised offer, but at the time its recommendation had a sting in the tail. The company’s board of directors said they should do so only if they are solely interested in making a short-term gain from the company. In a statement, PacNet said stakeholders should accept ‘if they presently take a short-term view of their investments in PacNet shares,’ and to ‘reject the revised offer if they presently take a medium to long-term view of their investments in PacNet shares’. At the start of June MediaRing increased its initial offer of USD8.25 per share (made in February).