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PRAGUE (Reuters) - Czech-Slovak investment bank Penta's offer price for the remaining shares in Fortuna Entertainment (FORE.PR) it does not already own is below fair value, the Czech betting group said.
Fortuna's (FEG) management and supervisory boards said that Penta's 118.04 Czech crown ($5.06) a share offer did not provide a "meaningful premium" to the market price.
It added in a statement that although the offer price was not fair, the rationale had merit.
"However, the FEG Boards are of the view that this should be accompanied by offering the minority shareholders a reasonable opportunity to exit FEG against a price that reflects the value of FEG," the statement released late on Friday said.
Penta, which holds 68 percent of Fortuna through its Fortbet Holdings unit, launched a bid to buy out minority shareholders and take the company off the market in March.
Last week, it raised the offer price in the voluntary buyout from an initial offer of 98.69 crowns, which was 10 percent below the market value at the time.
The new price provided an 8 percent premium when announced. Fortuna shares closed just above the raised offer price on Friday.
Some minority shareholders have also complained about the offer. A group controlling 10.5 percent of the company and advised by Templeton said last week that the price was "still significantly below value".
($1 = 23.3280 Czech crowns)
Reporting by Jason Hovet, editing by Louise Heavens