Shareholders in Michael Hill International have been told there's no compelling reason to accept a partial takeover offer from family interests associated with its founder.
Durante Holdings, a privately-held Australian-based entity representing the Hill family, already holds 47.6% of the jewellery company and is bidding for up to 50.2%.
It is offering 90 cents a share for a controlling stake in the company, valuing the firm at about $344 million.
But an appraisal report, prepared by Grant Samuel, puts the value of the company at between 98 cents and $1.15 a share, and says unless shareholders want to sell their holdings in the short-term, there's no compelling reason to accept the offer.
Shares in Michael Hill were trading at 85 cents before the partial takeover offer was announced in December, but reached 91 cents in mid-January after a favourable trading update and profit upgrade.
They closed at 90 cents on Friday.
Durante Holdings last week extended its offer, which will now close on 28 February.