Singapore-based food group Cerebos's $71.6m takeover offer for Manuka honey products maker Comvita (CVT) fell over after it declined to raise its offer in the face of a high independent valuation. Cerebos said it didn't accept the valuation of Comvita at $3.40 - $4 a share but the gap between that and the offer price suggests Cerebos was making an opportunistic and rather cheeky bid. ...

Recommendation: CVT’s shares rose instantly to $2.70, then moved up to peak at $3, after Cerebos announced its $2.50 a share bid. I encouraged shareholders to sell a portion of their shares to lock in profits in case the bid failed and that has turned out to be the case with CVT’s price now at $2.45. The good news is that this price is still substantially above the price at which the shares were trading before the bid. CVT has good products and significant growth potential internationally. Another bid by someone with deeper pockets cannot be ruled out but in the meantime, the shares are definitely worth having in the portfolio. HOLD (latest price $2.45) HOLD at $2.45.