According to Bloomberg, two large institutional shareholders are planning to vote against the sweetened offer to pay 16.00 Canadian share for each share in Dorel Industries made a few days ago by Cerberus Capital Management to take the company private. They say that, while it is higher than an initial offer of C$14.50 per share, the new price “significantly undervalues” the company. Both investors essentially feel that the company’s prospects have improved because of the boost given to cycling by the Covid-19 pandemic. They also point out that members of the controlling Schwarz family are not selling their shares, presumably because they know the company’s future better than anybody else. The two shareholders are Letko, Brosseau & Associates, which owns about 12.2 percent of Dorel’s shares, and Brandes Investment Partners, which holds another 7 percent on behalf of its clients.

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