The board of the Soller Railway company has overwhelmingly rejected a bid to take the company over Mundra Invest S.L. on behalf of another company, Goros. Ten of the eleven directors voted against the offer, said to be worth 25 million euros, at a board meeting on Tuesday. The eleventh director abstained.
In a statement to shareholders the board explains that its members have a majority of the shares - 57.33%.
As the board has rejected the offer, it would now seem impossible for an acquisition to proceed. Indeed the board has said as much, as the bidder would need to acquire at least 50.01% per cent of the shares.
The board goes on to accuse representatives of the bidders, said to be a group of fewer than ten investors, of having made statements to the press which are totally distorted and slanderous.
It therefore reserves the right to take legal action it deems appropriate in "defending the good name of the company and of the members of its board of directors".
When the takeover bid was presented last month, all members of the board were immediately advised. The majority expressed an intention not to sell. The Soller Railway company president, Oscar Mayol concludes in the statement that the "vast majority" of the board wishes to maintain the Soller roots of the company.
Current shareholders and management are, to a large extent, descendants of the founders.