Mitek rejects ASG's latest offer, says undervalues company

(Reuters) - Mitek Systems Inc on Tuesday rejected ASG Technologies Group Inc's latest buyout offer, saying it undervalued the financial technology provider.

In a public letter released on Monday, hedge fund Elliott Management Corp's ASG Technologies raised its offer to buy Mitek to $11.50 per share from $10 previously on Oct. 31.

Following ASG's latest offer, Mitek said it offered ASG the opportunity to access preliminary diligence on a confidential, non-exclusive basis to provide ASG an opportunity to increase its offer price.

"We requested that ASG and Elliott agree to a confidentiality agreement, including a customary standstill, to prevent the misuse of the company's confidential and proprietary information," Mitek said.

"What we could not agree with was ASG's and Elliott's insistence on maintaining the ability over the next few months to threaten a proxy fight and otherwise pursue a hostile campaign against the company - even after potentially receiving confidential information," Mitek said.

Mitek also said that rather than constructively engage with the company, ASG and Elliott submitted director nominations to replace Mitek's board. Mitek said it will review those nominations and respond in due course.

Mitek said it remained open to considering and engaging with any potential buyer offering appropriate value for it and also remained open for further discussions with ASG and Elliott.

(Reporting by Arjun Panchadar in Bengaluru; Editing by Maju Samuel)