F&P Appliances directors recommend reject Haier offer

WELLINGTON, Oct 4 (Reuters) - The independent directors of New Zealand cooking and laundry ware Fisher and Paykel Appliances Ltd have recommended shareholders reject a takeover offer by cornerstone shareholder Haier Group because it undervalues the company.

The independent directors said the offer of NZ$1.20 a share from China's Haier does not reflect the value of the company given the direction it is taking after restructuring.

"We note that the Independent Adviser's opinion is that the full underlying value of FPA shares is in a range of $1.28 to $1.57 per share," the directors said in a statement on Thursday.

"We therefore recommend that shareholders do not accept Haier's takeover offer."

Fund manager Tower Asset Management said last month that they would not sell their 3.68 percent stake for anything less than NZ$1.50 a share.

Shares in F&P Appliances, in which Haier has a 20 percent stake, closed on Wednesday at NZ$1.205.

(Gyles Beckford)

((Gyles.Beckford@thomsonreuters.com; +64 4 802 7977 ; Reuters Messaging: gyles.beckford.reuters.com@reuters.net))