BPB has set out its defensive strategy outlining why it believes SG's 720p/share offer undervalues the group. The group said it was targeting underlying a 24% rise in pre-tax profit for 05/06 to no less than £350m & double digit EPS growth. BPB said that over the medium term it expects to achieve double-digit annual underlying earnings growth, adding that the offer is equivalent to 13.9x current year EPS, while Holcim's takeover of Aggregate Ind earlier in the year was on a multiple of 16.3, a premium of 15% to SG's bid. BPB added that its intention to recommend an 88% increase in dividends over the next 3 years, with payments of 23p/share in 05/06, 27p in 06/07 & 30p in 07/08 & its £600m return to shareholders is reason enough to keep the company independent."Do not be taken in by SG's arguments.
