Bairnco to review new Steel Partners bid |
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Fri, 02 Feb 2007 20:13
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NEW YORK (AFX) - Engineered materials maker Bairnco Corp. said Friday that it will review hedge fund Steel Partners II LP increased acquisition offer for the company.Earlier in the day Steel Partners boosted its bid to $13.35 per share in cash from its prior offer of $12 per share.Bairnco's board also advised shareholders not to tender any shares to Steel Partners until it makes a recommendation.Steel Partners said its new bid represents a 34 percent premium over Bairnco's closing stock price of $9.96 on the New York Stock Exchange on June 15, the day the company initially said it wanted to buy Bairnco.In January, Bairnco advised its stockholders to reject Steel Partners' tender offer, saying in a letter that the bid was inadequate. It also urged shareholders to reject Steel Partners' attempt to replace its board. The hedge fund in December nominated five directors to Bairnco's board to push the takeover.Steel Partners, through its BZ Acquisition Corp., first launched its tender offer in June and has extended its expiration date numerous times. The fund and its subsidiaries held about 43.1 percent of Bairnco's outstanding shares at the end of 2006.Steel Partners' new offer expires on Feb. 23 unless extended.Shares of Bairnco gained 49 cents, or 3.7 percent, to $13.60 in afternoon trading on the New York Stock Exchange. The stock has been trading between $9.20 and $14 for the past 52 weeks.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Steel Partners raises Bairnco offer 