A Target’s Statement release by the Board of of Volante Group has called on shareholders to reject the bid labelling the $1.01 offered per share as “absurdly low”.

Pointing to an independent report prepared for Volante by Lonergan Edwards & Associates, which valued the shares at between $1.27 and $1.44 each, the company said the offer doesn’t take into account the strategic value of the firm.

Finding that the offer was “neither fair nor reasonable” Lonergan Edwards’ estimates are between 26 per cent and 43 per cent more than the $1.01 per share being offered by Commander.

Volante Chairman, Robin Crawford, said “The implied multiple of the bid is well below IT sector historic transaction and forecast trading multiples and represents an unusually low premium, negative in some cases, to pre-offer trading prices.

“As well, the Commander offer doesn’t reflect either the strategic value of Volante’s strong competitive position in the high-end Managed IT Services sector, the value of that to Commander, or the company’s improving outlook.

Crawford said the Group was forecasting significant revenue and earnings growth from its emerging services business between now and fiscal year 2007.

“Services revenue is forecast to grow by close to 50 per cent from $103.9 million in FY 2005 to $155.7 million in FY 2007. Group EBITDA is expected to grow at a compound annual growth rate of 12.0 per cent per annum with NPAT growing 15.6 per cent per annum between FY 2005 and FY 2007.

“In light of all of these factors, Volante directors, who collectively own just under four per cent of Volante shares on issue, do not intend to accept the $1.01 Offer from Commander for any of these holdings,” Crawford said.