TWO SHAREHOLDERS REJECT TAKE-PRIVATE BID FOR DOREL

Two shareholders of Montreal-based bicycle maker dorel Industries Inc said on Tuesday they would vote against a take-private deal from Cerberus Capital Management, a day after the private equity firm sweetened its bid for the company. Shares of dorel were down about 2 per cent at $15.40 on the news. Investment advisory firms brandes Investment Partners and Letko, brosseau & Associates Inc, which own about 7 per cent and 12 per cent of outstanding class b subordinate shares of dorel, respectively, said the revised offer “significantly undervalues” the company. Cerberus on Monday raised the deal value to about $16 per share from $14.50 per share, or about $470 million, offered three months earlier. The raised bid represents a premium of about 2 per cent to the stock’s last close.