Here's an interesting situation - a profitable (earned $1.53 per share last year) life sciences company called LTEK. It's a very strange situation - solid company but trades on the BB because of very limited float. More than 70% of the shares are held by Dexter, and they have a tender offer out since late January to buy the rest at $49. Now trading at slightly above this. If it were traded by itself, my guess is that it would trade substantially (50%?) higher.
To complicate the matter further, Dexter in turn is the subject of an acquisition attempt by ISP, who in fact just raised their offer. But note the talk of a "spin-off."
I own a little - seems like very little downside here and still some reasonable upside.
Peter
>>Intl Specialty will push deal at Dexter meeting
(Reuters, 03/2/2000 12:46)
WAYNE, N.J., March 2 (Reuters) - International Specialty Products Inc.
(NYSE:ISP), which is attempting a takeover of Dexter Corp. (NYSE:DEX), said on Thursday it would present its case to Dexter shareholders at the company's annual meeting next month.
International Specialty Products (ISP) owns about 10 percent of Dexter's 23 million outstanding shares and has offered $45 per share for the rest, or a total of about $930 million. Dexter has rejected the offer as financially
inadequate. Both companies make specialty products and materials for a variety of industries.
On Monday Dexter, based in Windsor Locks, Conn., said it would explore its strategic alternatives and allow suitors to look at confidential financial data. On Wednesday Dexter filed with federal regulators a preliminary proxy statement for its April 27 annual meeting.
In a letter to Dexter's chief executive, K. Grahame Walker, ISP Chairman Samuel Heyman said:
"We were shocked and surprised by your decision to selectively choose among the ISP proposals to be presented to Dexter shareholders at this year's annual meeting scheduled for April 27 -- and especially by your attempt to
deny Dexter shareholders the right to vote on our proposal to increase the size of the Dexter board.
"We believe this proposal is legal, appropriate and was timely made, and ISP intends to present this proposal at the annual meeting and take all necessary legal action to cause its implementation if passed."
ISP is seeking to take control of the Dexter board and force acceptance of its takeover bid.
Heyman also expressed displeasure at Dexter's statement on Monday that it would survey all options and would consider a "spin-off or sale of one or more of the company's businesses."
"In this connection, we would remind you that ISP's interest continues to be in the acquisition of Dexter as a whole and therefore trust that, before considering any such dismemberment, Dexter will enter into discussions with
ISP concerning our acquisition proposal," Heyman wrote.
ISP also said it would need "certain additional technical, financial and operating data" beyond that which Dexter has begun to provide. "We are compiling a separate list concerning these requirements which we will furnish shortly to your representatives," it said. |
