Source - SMW
Model railway group Hornby's directors believe a mandatory cash offer of 32.375p per share by Phoenix UK Fund significantly undervalues the company and its future prospects. 

The company said that board noted Phoenix UK Fund's belief that Hornby should maintain its AIM Listing and its stated support for maintaining a board of directors that complied with the QCA Corporate Governance Code.

The company said the board would be writing to shareholders with its formal response to the offer in due course.  

It strongly advised shareholders to take no action for the time being.