Memtec Calls U.S. Filter Bid ‘Inadequate’

Memtec Ltd., an Australian-based filtration products company, rejected a $330-million takeover bid from Palm Desert-based U.S. Filter Corp. as “opportunistic and woefully inadequate.” Memtec American depositary receipts rose $9.50 to close at $34.13 in Nasdaq trading of 3.01 million shares, more than 26 times the three-month daily average. The rise indicates that investors expect U.S. Filter will have to boost its bid. U.S. Filter shares fell 94 cents to close at $40.81 in trading of 1.81 million shares, more than the three-month daily average. U.S. Filter provides industrial and municipal water- and waste-water-treatment systems. U.S. Filter said it offered Memtec $30 a share. In a statement, Memtec Chairman Denis Hanley said the company wanted to advise shareholders that the offer was only a 17.9% premium over Memtec’s closing price Wednesday. He said Memtec depositary receipts reached a record high of $37.75 on July 25, or 25.83% above U.S. Filter’s offer price. U.S. Filter already owns 4.9% of Memtec, or 534,600 shares.