Arc directors have said they have yet to receive all the information relevant to the bid, including advice from independent experts on whether the bid is fair or reasonable. Once they have received that information, a recommendation will be made in the Target Statement, which should be available to shareholders around mid-April, the company said.

As for the bid itself, which is a one-for-four scrip offer, Arc directors said their initial reaction to the bid was that it was a strong endorsement of their long term strategy however there were causes for concern.

It said the bid may not be the most appropriate way of maximising value for shareholders and that the upcoming appraisal program may have a significant impact on shareholder value. Finally, if the bid is successful then Arc shareholder leverage to Arc's assets would be significantly diluted, Arc said.