Magellan Aerospace Corporation - Acquisition of shares of Devtek Corporation
TORONTO, June 6 /CNW/ - Magellan Aerospace Corporation announced the acquisition through an indirectly wholly-owned subsidiary of an additional 135,700 Subordinate Voting Shares of Devtek Corporation, which were purchased
today through the facilities of The Toronto Stock Exchange, resulting in the acquisition of an aggregate of 471,700 additional Subordinate Voting Shares and 37,100 Multiple Voting Shares after the commencement of the formal bid by
Heroux Inc. for the Subordinate Voting Shares and Multiple Voting Shares of Devtek Corporation. Magellan Aerospace Corporation now holds or exercises control or direction of 1,600,900 Subordinate Voting Shares and 47,100 Multiple Voting Shares of Devtek Corporation. The present purpose of the acquisition is for investment purposes. Magellan Aerospace Corporation may acquire beneficial ownership or control or direction of additional shares of Devtek Corporation from time to time.
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Investment Banking Firm, Alexander Hutton, Works With James N. Renner Co-Founder and Former CEO of Devtek, and Other Shareholders to Develop Alternatives to Heroux Offer
New Alternatives Surface for Shareholders of Devtek Corporation To the Proposed Merger with Heroux Inc.
SEATTLE, June 6 /CNW/ -- Investment banking firm, Alexander Hutton, is working with co-founder and former Devtek Corporation CEO, Mr. James N. Renner and other shareholders to develop alternatives to the proposed Devtek
Corporation (Toronto: Dek.A; Dek.B) and Heroux Inc. (Toronto: HRX) merger.
On Tuesday, May 30, after several postponements, Devtek finally held its 1999 Annual General Meeting (AGM). "It was clear to me from the numerous shareholder questions and comments, that shareholders are extremely dissatisfied and upset with the way in which they are being treated, a
sentiment which I share and which prompted the actions being announced today," said Mr. James N. Renner, co-founder and former CEO of Devtek.
Alexander Hutton ( alexanderhutton.com ) believes that in order to give sufficient time for a more attractive offer to be developed and presented, shareholders should give careful consideration prior to depositing their shares in accordance with the current 'Offer.'
"In my opinion, and those of other shareholders, it appears to be quite clear that Devtek is being bought with its own cash as confirmed by Mr. Gilles Labbe, Chairman, President, and CEO of Heroux in response to a direct question posed by a Devtek shareholder at the meeting held directly following the Devtek AGM. Additionally, the offer from Heroux to acquire all of Devtek's
outstanding subordinated and multiple voting shares does not represent $3.50 per share at current Heroux market prices. We are aware that competitive offers, including at least one all cash offer, were presented to Devtek's
Board. We believe that shareholders should be given every opportunity to evaluate these alternatives and that the current restrictive process is unfair to shareholders," Renner continued.
Alexander Hutton is an established middle-market investment banking and venture capital firm. Its skilled professionals have a combined total of over 200 years of operational and transactional experience. The firm focuses on companies in a variety of fields of commerce that reflect its worldwide expertise in technology, aerospace, manufacturing and other industries for business owners and corporate shareholders. A related firm, Alexander Hutton
Venture Partners, is a leading venture capital firm focused on equity investments in the most promising technology companies.
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Ok, this I don't understand. I've followed Devtek a bit, but never bought in because I thought it was a loser. Why would Magellan be interested? At MAL's current share price, adding Devtek would certainly put a stress on their bottom line. Alternately, is MAL hoping to force Heroux into a higher bid in order to make a quick profit?
I may be missing something in all this, but I hope it's the latter for MAL. I would like to see some real earnings growth before any more acquisitions. |
