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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2272)	9/6/2010 3:39:58 PM
From: richardred	Respond to of 7242

PRPX-The drama continues Tuesday, August 31, 2010 L.B. Foster, Portec extend merger deadline, increase offer Pittsburgh Business Times L.B. Foster and Portec Rail Products Inc. announced Monday they have created a second amendment to their plans to merge, which will extend the deadline and changes the price per share. With the agreement, the two firms agreed to extend the final date of the merger agreement from Aug. 31 to Dec. 30. The companies announced in February their intent to merge, with Green Tree-based L.B. Foster (Nasdaq: FSTR) acquiring the outstanding shares of common stock of Pittsburgh-based Portec (Nasdaq: PRPX). In addition, L.B. Foster increased its tender offer to purchase the shares from $11.71 per share to $11.80 per share. It has also agreed to pay Portec $2 million if the transaction doesn’t close by the Dec. 30 deadline. L.B. Foster also announced that it intends to divest Portec’s Huntington, W.Va., facility, a move the companies believe should satisfy Department of Justice antitrust concerns. The companies have faced several set backs in completing the merger due to Department of Justice antitrust concerns. The deal was stalled due to a preliminary injunction handed down by the Court of Common Pleas of Allegheny County. It garnered lawsuits filed on behalf of Portec shareholders, alleging the board breached its fiduciary duty by accepting the $112 million deal and not seeking other offers that may have been more lucrative. Read more: L.B. Foster, Portec extend merger deadline, increase offer - Pittsburgh Business Times pittsburgh.bizjournals.com