Emhart Corp.'s board of directors today rejected an unsolicited $2.4-billion takeover offer from an investment group, saying the bid was inadequate and possibly illegal.
The board raised the question of possible insider trading, pointing specifically to the “unusual trading” of Emhart stock prior to disclosure of the takeover bid.
Peter L. Scott, Emhart chairman and chief executive officer, recommended in a letter that shareholders not tender any of their shares to New York-based Topper Acquisition Corp.
Topper, whose investors include oil heir Gordon P. Getty and New York developers Lawrence and Zachary Fisher, had made an offer of $35 a share on Feb. 24 for Emhart, a multinational producer of industrial and consumer products. Emhart also provides electronic systems technology services for commercial markets and the government.