AFIC gets cranky with weak boards

Australian Foundation Investment Co said directors and advisers of target companies in takeover bids were doing too little to consider the long term value of their own companies, and thus letting down shareholders. “There is a lot of short-termism, and directors of companies under takeover should be more red blooded in their defence and gain better and fairer prices for all shareholders,” Bruce Teele said. AFIC was forced to accept a number of takeover bids last year in cases where it believed the target company was being undervalued, Teele said.