Friday, February 03, 2006
COAST DISTRIBUTION REJECTS BUY-OUT OFFER
Coast Distribution System Inc., which makes accessories and parts for recreational vehicles and boats, said Friday a special committee of its board rejected an unsolicited, nonbinding takeover bid from Bell Industries Inc.
Bell, which provides information technology services, has offered to buy the company for $7.70 per share in cash. Coast said the offer does not reflect the company's underlying value and it's not in the best interest of the company's stockholders.
Bell representatives could not immediately be reached for comment.
Coast added the offer represents a premium of about 4 percent over the closing price of its shares on Dec. 14, the day before Bell publicly announced its bid.
Bell is based in El Segundo, Calif. Its recreational products division distributes parts for motorcycles, boats and recreational vehicles.
Coast said it also adopted a shareholder rights plan and declared a dividend distribution of one share purchase right on each outstanding common share to shareholders of record as of Feb. 15. The shareholder rights plan is designed to insure "fair and equal treatment" of the company's shareholders in the event of a proposed hostile takeover, among other things, the company said.
Coast's shares closed up 6 cents at $7.49 on the American Stock Exchange.
Bell's shares closed up 4 cents at $2.60 on the AMEX.
Bell, which provides information technology services, has offered to buy the company for $7.70 per share in cash. Coast said the offer does not reflect the company's underlying value and it's not in the best interest of the company's stockholders.
Bell representatives could not immediately be reached for comment.
Coast added the offer represents a premium of about 4 percent over the closing price of its shares on Dec. 14, the day before Bell publicly announced its bid.
Bell is based in El Segundo, Calif. Its recreational products division distributes parts for motorcycles, boats and recreational vehicles.
Coast said it also adopted a shareholder rights plan and declared a dividend distribution of one share purchase right on each outstanding common share to shareholders of record as of Feb. 15. The shareholder rights plan is designed to insure "fair and equal treatment" of the company's shareholders in the event of a proposed hostile takeover, among other things, the company said.
Coast's shares closed up 6 cents at $7.49 on the American Stock Exchange.
Bell's shares closed up 4 cents at $2.60 on the AMEX.
