Brazilian machine-tool producer Industrias Romi
S.A. did manage to attract about 5.7-million
shares—some 49.3% of all outstanding shares?of
Hardinge Inc.— with its $10-per-share
bid.
But in the end that fell short of the two-thirds it had said
it wanted to take over the U.S. builder. The morning after its
second extended deadline on July 14, Romi announced the
expiration of its tender offer.
Hardinge chairman Kyle Seymour said his board was pleased to
be able "to move past the distraction" of Romi's
takeover bid and keep focus on "building value for our
shareholders."
In Nasdaq trading, shares of Hardinge fell around $1 to $8 on
word of Romi's withdrawal. In a series of moves that started last
year, Romi originally bid $8 per share. From the start, Hardinge
fought off the takeover, and Romi went directly to courting
stockholders of Hardinge, which had 11.6-million shares of common
stock outstanding at the end of March. Hardinge consistently
told its shareholders the Romi bid was too low.
On May 10, Romi upped its proposed price to $10, and Hardinge
again told its shareholders it was in their best interest to hold
off. Romi then extended its deadline to June 18 for stockholders
to accept its bid and said it would let the $116-million offer
expire if a "significant" increase in support didn't
materialize. On that date some 48% of Hardinge stock had been
tendered, up from 38% at the end of the previous offer period but
still considerably short of the 66.6% it needs to complete the
takeover. So Romi extended the deadline again, this time to
mid-July, a move that apparently failed to attract significantly
more shareholders.
News roundup.
Reported by Metalworking Insiders' Report newsletter, copyright 2006 by Gardner Publications, Inc., editor: Joe Jablonowski. Visit web site on
http://www.metalworkinginsider.info.
|
|
Send this story to a friend.
|