DRNO - Daily Research News
News Article no. 8783
Published August 26 2008

 

 

 

Greenfield to Cancel First Buyout Deal

In the US, Greenfield Online has confirmed that it has received a 'superior proposal' of $17.50 in cash per share from an undisclosed potential buyer, and that consequently it intends to terminate the existing $15.50 per share merger agreement with investment firm Quadrangle.

Quadrangle's offer would have given shareholders about $407.9m, based on the firm's 26.3 million outstanding shares: however, Greenfield said at the time that it would pursue alternative buyers. Investors Springhouse Capital and Pennant Capital later complained that the bid undervalued the firm.

According to the existing agreement, Quadrangle has until Friday to increase its offer. If no increase is forthcoming, Greenfield will be entitled to terminate the proposal, but will be stung with a $5m fee.

The new offer, made in early August, is not contingent on financing.

Shares rose $1.02 to $15.98 earlier today. A fortnight ago, Greenfield reported a decline in Q2 net income to $2.1m, compared with $3.1m a year earlier.

Web site: www.greenfield.com .

 

 
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