Canadian retailer and distributor RONA has launched a “microsite” to combat what it considers a hostile takeover attempt by U.S.-based Lowe’s, which currently operates 31 stores in Canada. On the microsite page, Rona gives the background of the $1.85 billion unsolicited bid from Lowe’s on July 8, and the reasons its board has decided against the proposal.
Lowe’s has launched a similar microsite, which starts with the chronology of the original non-binding proposal. But the two companies prefer different outcomes, of course. Lowe’s believes a merger would be better for RONA’s stakeholders and customers alike.
The companies also differ on whether Lowe’s is attempting a hostile takeover.
Here’s RONA’s view:
“Lowe’s indicated that it had held discussions with a number of shareholders of RONA and proposed entering into a board-supported transaction,” the Boucherville, Quebec-based retailer stated. Although the current RONA board opposes the transaction, Lowe’s has indicated it intends to still move forward with the proposed acquisition, according to RONA.
On its microsite, Lowe’s said it was only trying to get the word out.
“It is important for the public to understand that Lowe's has made a non-binding proposal only to the RONA Board of Directors, which the RONA Board has rejected. We are making our proposal public to enable the shareholders and stakeholders of RONA to become fully informed about the proposal so that they may make their views known to the RONA board of directors.
“There is no assurance a deal will be consummated.”