NetCreations Pays Acquisition Breakup Fee, Postpones Shareholders Meeting
The company also is to be paid certain expenses associated with the failed agreement, which DoubleClick estimates to be between $850,000 and $900,000.
The opt-in e-mail services provider also postponed its shareholders meeting that was scheduled for today. Instead it will prepare, file and distribute proxy solicitation materials associated with its acquisition by SEAT Pagine Gialle SpA.
The meeting was originally set to vote on the proposed acquisition by DoubleClick, New York. That deal was terminated last week after NetCreations received an all-cash offer for $7 per share from SEAT Pagine Gialle.
NetCreations said it has not yet set another date for its shareholders meeting.
As a condition of their agreement, SEAT Pagine Gialle required NetCreations' two largest shareholders -- president/CEO Rosalind Resnick, who owns 36.3 percent of the company's shares, and chief technology officer Ryan Druckenmiller, owner of 35 percent -- to furnish proxies to vote shares consisting of about 65 percent of NetCreations' outstanding common stock.
Approval by at least 66 2/3 percent of NetCreations' shareholders is needed for the acquisition to proceed.