West Withdraws Buyback Offer After Committee Rejects Purchase PriceGary L. West, Mary E. West and Troy L. Eaden withdrew their proposal last month to acquire the remaining 15 percent of outstanding shares of common stock of West TeleServices Corporation, not currently owned by the group, after being informed by the special committee appointed by the company's board of directors that the special committee would not be able to recommend the group's final proposal of $15.50 per share.
"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 Based on the special committee's decision, the Wests and Eaden have withdrawn their proposal and terminated all discussions with West TeleServices relating to their proposal.