DCC's board has recommended a £5.75bn takeover by KKR and Energy Capital Partners, despite major shareholders including Fidelity International, Aviva Investors and founder Jim Flavin branding the offer too low. The company, which delivers liquid gas to off-grid customers, has long suffered a depressed valuation.

The directors justify their recommendation partly on the firm's inability to "sustainably re-rate in the public markets" — its price-to-earnings ratio falling from nearly 25 times in 2016 to around 11 times in early April. KKR's bid sits one-third above the three-month average share price.

Chair Mark Breuer faces a binary choice: reject or recommend. A halfway position — advising shareholders the bid is both cheap and generous — might have been wiser. Instead, the board has conceded, risking blowback from holders of over 12% of stock who have spoken out.

By venturing into market sentiment and future multiples — the investor's domain — rather than focusing on DCC's earnings prospects, the directors have drifted from their expertise. Future boards should stand firm and haggle for valuations reflecting true prospects, even if that means rejecting apparently fulsome bids.