TORONTO - C.A. Bancorp urged shareholders on Wednesday not to tender their stock to a new unsolicited bid from private equity firm Maxam, saying it was continuing talks with other parties interested in acquiring it.
Vancouver-based Maxam raised its all-cash takeover bid for C.A. Bancorp by 19 percent on Tuesday, now valuing the small Canadian merchant bank at about C$39 million ($37.9 million).
Maxam, run by managing partners John Ciampi and Sean Morrison, increased the bid for C.A. Bancorp to C$1.45 a share. Its prior offer was C$1.22 a share, or some C$33 million.
C.A. Bancorp, which rejected Maxam's initial bid, advised shareholders to hold off from tendering to the new offer before its board and its advisors have had an opportunity to fully explore all available alternatives.
Maxam's revised offer does not expire until Feb. 2, and there is no advantage to tendering shares prior to the deadline, C.A. Bancorp said in a statement.
C.A. Bancorp said its board would provide a formal response with a recommendation to shareholders before the expiration of the Maxam offer. ($1= $1.03 Canadian) (Reporting by Euan Rocha; Editing by Lisa Von Ahn)