Gladstone repeats bid rejection

LONDON (Reuters) - Software provider Gladstone (GLAD.L) reiterated its rejection of a hostile takeover bid from Constellation Software Inc (CSU.TO) on Friday, saying the offer does not reflect its full value.

Gladstone, which supplies fitness clubs, UK leisure centres, and universities with software, wrote to its shareholders recommending they reject the 25 pence per share offer from larger Canadian software group Constellation.

"The board remains confident in the prospects for the company as well as the management's ability to deliver the full value of Gladstone's strategic goals.

"Gladstone's shareholders should ignore Constellation's opportunistic offer, which is wholly inadequate, and substantially undervalues Gladstone," said Dr. Said Ziai, chief executive in a statement.

In a separate statement, Gladstone said its earnings before interest, taxes, depreciation and amortisation (EBITDA) for the year to end-August 2008 increased 15.5 percent to 1.91 million pounds.

Gladstone, which has offices in the UK and Australia and facilities in Denmark and Pakistan announced on Wednesday it is to supply Virgin Active's first club in Australia.

(Reporting by Farah Master; Editing by Rosalba O'Brien and Mike Nesbit)