Cosmos teases higher bid in Cossette takeover battle

Cosmos is said to have suggested the figure in a letter to the chairman of the Cossette special committee tasked with assessing takeover proposals.

It has already offered C$7.87 a share – matching the price offered by US private equity group Mill Road Capital.

Mill Road’s takeover bid was accepted by Cossette’s board of directors two weeks ago and continues to enjoy the board’s support.

Cossette says the agreement with Mill Road prevents it from holding negotiations and from sharing information with rival bidders, unless the board determines that it has been presented with a “superior proposal”.

The company claims to need more information from Cosmos before it can reach a decision on whether the renewed bid – with the possibility of a higher price to come – meets that requirement.

Cosmos is headed by former Cossette vice-chairman and co-founder François Duffar. All together, Cosmos says 37.3% of Cossette shares are behind its bid to buy the company, while the 30% of shares held by Cossette’s key management, including CEO Claude Lessard (pictured), are backing Mill Road.

A special meeting of Cossette shareholders has been called for 18 December to discus the Mill Road offer. The marketing services group provides strategic planning and research services through its agencies Nucleus and Impact Research in Canada, Cossette in the US and Miles Calcraft Briginshaw Duffy in the UK.