Court Sq. Starts Offer for Delco Remy
WILMINGTON, Del. (Reuters) - Court Square Capital Ltd, a unit of financial-services giant Citigroup (NYSE:C - news), said on Thursday it has started a tender offer of $8.00 per share for the publicly-owned stock of auto parts maker Delco Remy International Inc. (NYSE:RMY - news).
Shares of Anderson, Ind.-based Delco Remy were up 1/8 at $8-3/8 in Thursday trading.
The company, which was wholly owned by General Motors Corp. (NYSE:GM - news) until Court Square's first investment in 1994, became publicly traded in late 1997.
When Court Square proposed its offer in December, Delco Remy said the company held about 6.6 million voting shares, or about 37 percent of those outstanding. Court Square also owned about 6.3 million shares of nonvoting stock convertible into voting shares.
If the nonvoting stock were converted, Delco Remy said, Court Square would hold voting power of about 53 percent.
The company also said Court Square affiliates are reported to own or have rights to acquire about 3.2 million additional shares.
At that time, Delco Remy said its board would evaluate the Court Square offer. Company officials were not immediately available to comment on Thursday.
That statement said the offer, scheduled to expire at midnight EST on Feb. 8, is conditioned upon federal antitrust clearance and the absence any proceedings challenging it.
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