ClearView Wealth Management’s board has unanimously rejected a $220 million unsolicited takeover bid from CCP Bid Co, branding the bid inadequate and opportunistic.

CCP, a subsidiary of private equity manager Crescent Capital Partners Management, made the 50-cents-a-share offer last week.

InvestorFirst Securities analyst Stewart Oldfield agreed that the bid for ClearView was too low as it did not take into account the company’s potential for growth.

“It’s a new company in many respects, it’s just starting to grow under its new management team and board and the bid gives no value to its potential,” he said.

Mr Oldfield said CCP would have to make an offer of about 64 cents if it was serious about the takeover.

“I think they have to make a higher offer if they want to attract some traction with their interest,” he said.

ClearView said on Tuesday that the offer was inadequate and undervalues the financial advisory and life insurance company.

“The board continues to advise ClearView shareholders to take no action in relation to CCP Bid Co’s offer,” ClearView said in a statement.

“Overall, the offer is opportunistic and the timing seems designed to take advantage of uncertain and volatile investment markets.”

ClearView’s major shareholder, Guinness Peat Group, has also said the offer price was inadequate and represented a substantial discount to ClearView’s fair value.

ClearView’s board said the bid fails to reflect the value of its new products, services and enhanced distribution.

The offer is subject to several conditions, including a minimum acceptance by more than half of ClearView’s shareholders.

ClearView said it would provide detailed reasons for its decision to reject the takeover bid when it sends its target statement to shareholders.

At 1436 ClearView shares were up 1.5 cents, or 2.8 per cent, to 55 cents.