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Sunday, December 14, 2014

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

Australian-listed 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, sending its shares to their highest level since listing.Georgia, U.S.-based Recall said it rejected a A$7 per share offer from Boston-based Iron Mountain, saying it was not a big enough premium given the combined companies would save A$250 million a year. It was only a 9.4 percent premium to the stock's most recent close, it added."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 on Monday.Shares of Recall, which was demerged from Australian logistics giant Brambles Ltd a year ago, leapt as much as 20 percent and were up A$1.23 at A$7.65 at 0039 GMT, a 70 percent premium to the stock's price when it first traded in December 2013.

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.