Proxy adviser ISS says Hollysys holders should vote against Ascendent deal – report \

Influential proxy adviser Institutional Shareholder Services recommended that Hollysys Automation Technologies (NASDAQ:HOLI) shareholders should reject Ascendent Capital Partners $1.7 billion offer.

The Hollysys (HOLI) sales process was “relatively short” and appeared to have “included little effort at price maximization,” ISS said in its recommendation, according to a Bloomberg report on Saturday.

ISS is the second major proxy adviser to come out against the deal in recent days after Glass Lewis said that Hollysys (HOLI) holders should vote against the deal. Hollysys (HOLI) holders are scheduled to vote on the Ascendent Capital Partners $26.50 a share deal on Feb. 8.

The recommendation comes after Hollysys (HOLI) said in late December that it didn’t receive any offer that it deemed superior to its $26.50 a share sale to Ascendent Capital even after Dazheng Group Acquisition disclosed that it made a bid valued at $29 a share, or $1.8 billion.

“Given the questionable effort to maximize price, the unreasonably high standard to which Ascendent’s main competitor has been held, and the inexplicably truncated process, votes against the proposed transaction are warranted,” ISS said in the report, according to Bloomberg.

Hollysys (HOLI) earlier this month that it received a $30 a share bid on Dec. 22 from a consortium consisting of three investors.