West Withdraws Buyback Offer After Committee Rejects Purchase Price
"It is not surprising, as it was such a low price," said Laurie Kolbeins, managing director of Texada Capital Corp., Wayne, PA, an investment banking firm. "The committee probably came back with an acceptable price that the owners found to be much higher than they were willing to pay."
The withdrawal is not expected to affect the company.
The final proposal represented a premium of approximately 26 percent over the closing market price of the Omaha-based company's common stock on July 15, 1998, the day before the group's initial proposal of $13.50 per share was announced. Based on the special committee's decision, the Wests and Eaden have withdrawn their proposal and terminated all discussions with West TeleServices relating to their proposal.