InFocus Friday said it is sticking with an acquisition offer made by Image Holdings Corp. and has turned down a subsequent, unsolicited proposal from another company.
InFocus said in a statement that it has been in talks with and had "extensive negotiations" with the unnamed party that made the alternative bid. However, the mystery bidder failed to submit a binding proposal to acquire InFocus. The company also said that the offer would have to garner foreign regulatory approvals, which could be "subject to substantial uncertainties."
The first InFocus suitor, Image Holdings Corp. (IHC), entered into a definitive merger agreement with it on April 13. Under the terms of the agreement, IHC and its wholly owned subsidiary, IC Acquisition Corp., made an all-cash tender offer to acquire all outstanding shares of InFocus stock at $0.95 per share, or roughly $39 million total.
That offer represented a 36 percent premium over the April 9 closing price of $0.70 per share, the last trading day prior to the agreement, and a 90 percent premium over the last 30-day average closing price of $0.50 per share. The acquisition is subject to the tender of a minimum of 65 percent of InFocus outstanding shares.
However, just nine days later, the Wilsonville, Ore.-based projector giant received an unsolicited acquisition offer from an unnamed source.
InFocus refused to divulge the terms of the offer, company, or person behind the bid. At the time, InFocus said in a statement that its board of directors was still in favor of the merger and that it "continues to unanimously recommend that InFocus shareholders accept and tender their shares."
Some shareholders have been disgruntled with the company for years over what it has termed mismanagement, and blame it for a steep drop in stock price.
Two days ago, an InFocus shareholder filed a class action lawsuit against the company, according to Portland Business Journal. The angry shareholder, Donald Donovan, claims that the company's offer from IHC undervalues its worth, and wants to halt the merger.
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