Novera Energy up after rival raises its hostile bid

Novera Energy, the renewable energy business, added 10.5p to 76p following news that Infinis Energy, backed by Guy Hands' private equity group Terra Firma, had raised its hostile bid form 62.5p to 75p and bought 5.6m shares to take its stake to 46.7%. Novera quickly rejected the new offer, saying it still undervalued the business. Analyst Andrew Shepherd-Barron at KBC Peel Hunt agreed:
An improved 75p cash offer is still too cheap. Infinis can afford 98p in our view. Our target price of 80p-85p is a minimum reflecting a lack of competitive tension. Shareholders should hold out for more.