MONTREAL - CVTech Group Inc. shares surged before trading was halted Friday morning after a leading investor disclosed a takeover bid that was twice rebuffed by the company.
The Quebec company's shares (TSX:CVT) gained more than 20 per cent after Gestion G. Aubert Ltd. disclosed that a leading NYSE-listed electrical contractor offered $1.95 per share, representing a 70 per cent premium.
Gestion G Aubert is CVTech's second-largest shareholder with a 14 per cent stake in the company which provides various services to power utilities.
It said the unnamed contractor initially offered $1.65 per share on Jan. 30. The bid was increased the end of March, but was again rejected by CVTech.
Aubert says the offers were "significant" and should have been pursued by CVTech's board.
At the very least, shareholders should have been informed and allowed to decide on whether the company should be sold, he wrote in the letter to shareholders.
Aubert also urged shareholders to reject several proposed bylaw changes at CVTech's annual meeting on June 4.
It was also critical of the financial results for 2012 and the first quarter of 2013.
Pierre Lacroix of Desjardins Capital Markets described the rejected bid as "positive" because it highlight the value embedded in CVTech's shares.