Winland will fight Dyna Technology takeover bid
Sherri Cruz
Star Tribune
Thursday, June 14, 2001
Winland Electronics Inc. plans to fight a takeover attempt by Dyna Technology, which owns approximately 16 percent of Winland's common stock.
"Basically, [Dyna Technology doesn't] believe the directors of this company know what they're doing," said Lorin Krueger, CEO of Mankato-based Winland.
Utah-based Dyna Technology, a holding company that operates two generator manufacturing companies in Le Center, Minn., has demanded a meeting of shareholders.
The purpose of the meeting, according to a Securities and Exchange Commission report filed in March, is to replace Winland's board of directors with its own picks.
Ralph Call, Dyna's president and CEO, could not be reached for comment. He and his wife, Nola, are Dyna's only shareholders.
"They believe that the company is underperforming," Krueger said. "They wouldn't be the first corporate raiders on the block." Krueger said he prefers to view the
situation as a sign that Winland is valuable.
"Winland has been a good growth company," Krueger said. The electronic-control maker has been profitable since it began in 1972. Since then it has expanded into
growth technologies such as DC motor controls, some of which are used to regulate the speed of the mobility carts used in supermarkets.
But Winland had a tough year in 2000. It lost $309,000, and sales fell 2 percent to $19.5 million. The company also logged a first quarter loss of $129,000 on sales of $4.5
million. Krueger attributed the losses to the slowing economy and declining sales at two of its largest customers, PeopleNet and Select Comfort.
Winland's legal counsel is evaluating the company's options and planning a response, Krueger said. He added that he discussed the situation with Winland's 107 employees
on Wednesday.
"They're concerned," he said. "These things are always unproductive."
Winland's stock price closed at $1.35 Wednesday, unchanged.
-- Sherri Cruz is at scruz@startribune.com .
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