Abano Healthcare has rejected an unsolicited takeover bid from interests associated with Peter Hutson, its joint-venture partner.
The offerer has said it intends to move promptly down the formal takeover path.
Peter Hutson and his associates own 50% of Bay International, an audiology business in Asia and Australia being developed from scratch, as well as a 14% stake in Abano itself.
Hutson proposed a scheme of arrangement, which would have required approval from only 75% of shareholders rather than the normal 90% acceptance threshhold.
It had also requested unanimous board approval.
Hutson has said it intends to move promptly down the formal takeover path.
Abano chief financial officer Richard Keys would not say how long ago the board was approached.
He said there has been no falling out between Abano and Peter Hutson and the joint venture was proceeding.
Abano shares jumped nearly 13% to $6.60 on Wednesday.