Overland Not Interested In Offer From Advanced Digital
DOW JONES NEWSWIRES
October 13, 2005 12:50 p.m.
SAN DIEGO -- Overland Storage Inc. (OVRL) determined that pursuing the unsolicited offer from Advanced Digital Information Corp. (ADIC) wasn't in the best interest of Overland's shareholders.
In a a press release Thursday, the data storage company said it received an offer that Advanced Digital wanted to buy all outstanding shares of Overland for $7.90 a share in cash on Tuesday.
In the filing with the Securities and Exchange Commission, Advanced Digital said the offer price represents an 18% premium to Overland's unaffected share price of $6.69, which was the closing price prior to when Advanced Digital indicated it acquired a stake in the company.
In the SEC filing, Advanced Digital said it owns 9.28% of Overland common stock. Advanced Digital acquired the 1.3 million shares between Aug. 4 and Aug. 16.
The price would also represent an 85% premium to Overland's unaffected enterprise value, based on Overland's expected cash balance at the end of the fourth quarter on Aug. 15.
Representatives from both companies weren't immediately available for comment.
Overland shares traded at $7.90, down 3 cents, shortly after the open on Nasdaq. Advanced Digital shares recently traded at $9.30, up 7 cents.
Company Web site: overlandstorage.com
-Josee Rose; Dow Jones Newswires; 201-938-5400; asknewswires@dowjones.com
Overland Storage Chief Financial Officer Vernon A. La Forti said the price offered by Advanced Digital was inadequate.
"The board firmly believes in the company's strategy and believes that the proper execution of that strategy will return greater profit to the shareholders than this inadequate offer will," LoForti said in a telephone interview.
A spokesman from Advanced Digital said "there's a range of options we can and may pursue which include owning the stake in Overland storage, selling the stake, buying more stake, or making another tender exchange offer. We're interested in friendly negotiations with them, but that hasn't happened yet." |
