Fleet manager Eclipx Group has rejected an $806.6 million cash-and-stock takeover offer from peer SG Fleet Group, describing the offer as "inadequate".
The offer of $2.00 cash and 0.15 SG Fleet shares per Eclipx share, translates to $2.5235 per Eclipx share and represents a 17.9 per cent premium to Eclipx's closing price on Friday.
Eclipx Chairman Kerry Roxburgh said SG Fleet's offer did not "reflect the long term prospects and value inherent in Eclipx Group".
SG Fleet, in a separate statement, said it was disappointed by Eclipx's decision to not engage in talks about the offer and believed the proposed deal would add value to all shareholders.
Eclipx has already started a strategic review to evaluate the merits of "alternative customer orientated initiatives" and corporate actions available, the firm said in a statement.
By 1050 AEST, Eclipx shares had jumped 28 cents or 13.1 per cent to $2.42 in a steady Australian market, while SG Fleet shares rose 3.2 per cent to $3.60.
