Angie’s List turns down $512 million takeover offer

NEW YORK — Angie’s List says that its board has rejected a $512 million takeover deal from Internet company IAC/InterActiveCorp.

Shares of Angie’s List fell almost 3 percent in morning trading Tuesday before recovering late in the day to finish up 1.3 percent at $9.96.

The home services review site said last week’s offer “dramatically undervalues” the company. IAC offered $8.75 for each share of Angie’s List, which was a 10 percent premium on the stock at the time.

Angie’s List said it has a plan to grow its profit and said a deal with IAC will not benefit shareholders.

IAC did not immediately respond to a request for comment. The New York company owns websites including About.com and HomeAdvisor.com.

Angie’s List, based in Indianapolis, lets users research, shop for and rate plumbers, cleaners and other home services.

Scott Durchslag, chief executive of Angie’s List, said in prepared remarks that the board thinks Angie’s List should have the chance to evaluate its socalled profitable growth plan and share it with its stockholders before making any merger decisions.

Blake Harper, an analyst at Topeka Capital Markets., said Angie’s List likely wants more time to prove itself so it can negotiate with a stronger hand in the future.

“It’s definitely the right move for them,” said Harper, who rates the stock a hold. “They are probably just angling for a higher bid down the road.”

Angie Hicks and William Oesterle founded Angie’s List in 1995.