Menomonee Falls-based Magnetek Inc. said that it recently rejected an unsolicited offer by New York-based investment firm Blott Asset Management LLC and Talanta Investment Group LLC to purchase the company.
“While it is the fiduciary duty of the board to review credible offers, the board unanimously concluded that Magnetek’s business and strategic plans and long-term prospects as a stand-alone company would support a substantially better return to our stockholders than that represented by this expression of interest,” said Mitchell Quain, Magnetek’s chairman of the board. “As presented to the board, the expression of interest refers only to a ‘price in the range of $15.00 per share,’ which is less than a $1.00 premium to the $14.05 closing price of Magnetek’s common stock on April 2, 2013. Furthermore, the expression of interest appears to be based on a number of conditions and speculative assumptions including that a number of members of management and large stockholders would exchange their Magnetek common stock for shares in a newly formed company rather than receiving cash. We believe that pursuing this highly conditional expression of interest would distract us from achieving our business objectives and building the long-term value of the company.”