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Sunday, December 14, 2014

Australia's Recall rebuffs $1.8 billion offer from rival Iron Mountain, (NYSE: IRM)

Australian data storage company Recall Holdings said it rejected a A$2.2 billion ($1.82 billion) takeover offer from larger United States rival Iron Mountain Inc, saying the offer price did not reflect the potential merger benefits. Recall, spun out of logistics business Brambles Ltd last year, said on Monday Boston-based Iron Mountain had offered A$7 per share in the company in a non-binding indicative proposal, a premium of 9.4 percent to Friday's closing price."The proposal does not reflect the significant and unique value creation that a combination of these businesses would generate, including the potential to realise substantial synergies," Recall said in a statement to the Australian Securities Exchange.The offer price does not include a big enough premium for securing control of the company, since the acquisition would generate savings of $250 million a year for Iron Mountain, Recall added.But Recall said it "would be open to discussions with Iron Mountain" if it made an offer that reflects "the significant value creation of the merged companies".

Iron Mountain Incorporated (Iron Mountain) is engaged in storing records, primarily paper documents and data backup media, and provide information management services. Shares of IRM fell by 1.91% or $-0.71/share to $36.44. In the past year, the shares have traded as low as $23.80 and as high as $39.34. On average, 2601730 shares of IRM exchange hands on a given day and today's volume is recorded at 1249637.