Malaysian construction giant Sunway Bhd. is risking its $2.8 billion takeover bid for IJM Corp Bhd. after the target's board unanimously recommended rejection, citing the offer as 'NOT FAIR and NOT REASONABLE.' IJM's independent adviser M&A Securities concurred, amplifying investor uncertainty. The bid, launched at 3.15 ringgit per share, has already triggered a 15% stock decline for IJM since January, while Sunway's shares have fallen 7%. Analysts remain divided: Kenanga Research advises rejection, arguing the price undervalues IJM's growth, while CIMB Securities suggests holding out for a better offer.

IJM's plans to list its construction unit and monetize assets add complexity, potentially unlocking deeper value. Sunway's proposal could reshape Malaysia's construction industry by creating a major conglomerate, though scrutiny over indigenous equity requirements and an alleged corruption probe has already created headwinds. Investors must decide by April 6, with Sunway prepared to walk away if rejected.

The outcome could signal further industry consolidation as firms seek scale for large infrastructure projects.