Stock News: Mediaring offers to Pacific Internet may be rejected by shareholders!

MediaRing - Pacific Internet Ltd said its board has recommended that shareholders reject the offer by internet telephony provider MediaRing Ltd to buy the rest of the company for 8.25 usd per share. MediaRing, which holds a 4.86 pct stake in Pacific Internet, made the offer in February. Based on the advice of its financial adviser, BNP Paribas, Pacific Internet said that as an alternative to the MediaRing proposal, it is evaluating various options at maximizing shareholder value. Pacific Internet said it wants to remain as an independent entity and transform itself into an internet protocol (IP)-based communications and solutions provider over the next five years. It said it is also seeking merger and acquisition opportunities that can add value to the company. Despite the adverse recommendation by Pacific Internet's board, MediaRing said it remains committed to its offer. "We are disappointed that you have recommended that our cash tender offer be rejected. We believe that we have put a strong offer on the table for your shareholders," MediaRing said in a letter to the Pacific Internet board. "Our offer provides every shareholder with an opportunity to receive 8.25 usd net in cash per share, which represents a 27.7 pct premium over Pacific Internet's closing share price prior to our initial offer announcement," it said. "Shareholders will be able to realize their investment without having to wait for or take risk on the successful execution of your announced five-year business plan," it added.