MONTREAL - Rona Inc. (TSX:RON) has received and rejected an unsolicited takeover offer from Lowe's Companies that values the Canadian home improvement retailer at about $1.76 billion.
The Montreal-area company says the offer from its American rival (NYSE:LOW) wouldn't be in its shareholders' best interest and Rona will be looking at other options.
Rona says it received the offer nearly a month ago, on July 8 and told Lowe's last week on July 26 that it was rejecting the proposal.
Takeover rumours have circulated before but Rona only announced the approach from Lowe's on Tuesday before stock markets opened.
Rona says Lowe's is offering to acquire all its shares for $14.50 each, more than $2.50 per share above Rona's closing stock price on Monday.
Rona shares closed Monday at $11.87 on the Toronto Stock Exchange.