Imperial Sugar (IPSU) rejected Schultze Asset Management's sharply reduced takeover offer Tuesday.
The Sugar Land, Texas, company called the $10.50-a-share bid "grossly inadequate" and "unacceptable because it sought to acquire control without providing full value to all shareholders."
The move came less than a week after Schultze slashed the value of its bid for Imperial Sugar by nearly 40%, saying it had earlier overestimated the worth of the maker of Dixie Crystals. Schultze, a 14% holder of Imperial Sugar, set off a 20% run-up in the stock in May by publicizing an unsolicited $17-a-share bid. Imperial Sugar has since traded in the $13-a-share range. On Tuesday, it was down 9 cents at $13.02.
On June 22, the sides entered a six-month confidentiality agreement and a 60-day standstill, Imperial Sugar said in August, but the companies failed to reach a deal.