An American company attempting to purchase ISG has claimed the contractor 'repeatedly failed to meet expectations' for shareholders.

Previously, the fit-out firms board released a defence document following Cathexis's £71 million takeover bid.

ISG rejected the bid and claimed it was inadequate.

However, in its Response Document, Cathexis has spelled out why it thinks the offer is fair.

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The American investment firm said: "ISG has demonstrated a history of volatile trading, has repeatedly failed to meet expectations and has delivered poor returns to shareholders relative to its peers.

"The Offer Price fairly reflects ISG's strengths while also taking into account its volatile performance, client concentration and the cyclicality of its industry.

"Cathexis has been a supportive shareholder - but, if the Offer does not succeed, the provisions of the City Code limit its ability to provide future support."

The investment firm added the £71m offer will remain until 1pm on 25 January.

(LM/MH)