The Globe and Mail reports in its Saturday edition that Indigo Books & Music traded up 68 cents to close Friday at $2.16 following a proposal from Onex founder and chairman Gerry Schwartz to take the company private. The Globe's Susan Krashinsky Robertson writes that Cormark Securities analyst David McFadgen recommends rejecting Mr. Schwartz's offer of $2.25 in cash per share to acquire the remainder of Indigo stock that he does not already own. Mr. McFadgen has a "buy" recommendation on the stock. The current share price "attributes little to no value to the brand and the lease portfolio," Mr. McFadgen wrote in a note on Friday, adding that Cormark believes Indigo is "capable of generating much higher EBITDA," or earnings before interest, taxes, amortization and depreciation. Indigo reported an adjusted EBITDA loss of $13.8-million and a $22.4-million net loss in its second quarter ended Sept. 30. Indigo is scheduled to report third quarter earnings next week. "In our opinion, this offer is wholly inadequate, and it should be rejected," Mr. McFadgen wrote. Mr. Schwartz sits on Indigo's board and is the controlling shareholder, with 56 per cent of the outstanding shares held in his personal holding companies.