The Bulletproof board is urging shareholders to reject a takeover bid from Macquarie Telecom, after its unorthodox open sent the company scrambling.

An independent expert says the 11c offer is neither fair nor reasonable and reflects a historical low in the price of the cloud provider’s shares (ASX:BPF).

“The offer does not reflect the strategic value of Bulletproof as a leading cloud services provider,” the report said.

“The offer does not reflect the potential profitability and value of Bulletproof following its recent restructuring and turnaround… [and] conflicts with the efforts of the Independent Board Committee to crystallise the strategic value of Bulletproof through discussions with potential competing bidders.”

Shareholders controlling 19.86 per cent of the company have committed to resisting the takeover. These are Microequities Asset Management, which has been building a stake in Bulletproof since the bid was launched, and Domains and Web which is controlled by cofounder Lorenzo Modesto.

Macquarie Telecom (ASX:MAQ) owns 16.13 per cent. Its bid values Bulletproof at about $117.9 million.

Anthony Woodward, CEO and cofounder of Bulletproof, sold his 16.11 per cent interest to Macquarie Telecom (ASX: MAQ) via a call option without telling the rest of the company.

Ironically, the man leading the defence is Craig Farrow, who originally pitched the idea of a takeover to Macquarie about six months ago.

The board says its turnaround plan is beginning to work, offering evidence of new business and reduced customer churn as examples.

It’s also been trying to pitch the idea that there may be other bidders out there.

Last week it opened a data room to allow others to do due diligence on the company.

Mr Farrow did not return calls requesting a comment.

Bulletproof shares were up 6 per cent to 13c on Friday afternoon, while Macquarie Telecom was up 0.39 per cent to $15.30.