In an attempt to keep shareholders on side and thwart a hostile takeover bid, exploration instrument firm Scintrex has increased the value of its shares above a proposed buyout price by tacking on a special dividend of $3 per share.
Describing the proposed buyout by Intelligent Detection Systems (IDS) as “inadequate, unfair and opportunistic,” Scintrex chairman Harold Seigel urged shareholders on April 27 to reject IDS’s $18-per-share bid for all issued and outstanding shares. Scintrex’s dividend counter-measure will be paid out on May 8 — one day after the IDS offer closes — whether the takeover bid is successful or not. Scintrex will fund the dividend with $8 million from its treasury. At presstime, Scintrex shares were unchanged at $15.75, whereas IDS was trading at $6.80, down 70cents following the announcement by Scintrex.
However, after Scintrex announced the divined component, IDS reported that it would trim its offer by $3 per share (or $8 million), to 1.935 IDS shares (based on a price of $7.75) or $6 and 1.16 shares for each Scintrex issue, for a total value per share of $15. At presstime, IDS’s board was debating whether to amend, abandon or continue with the bid.
IDS intends to combine the security and nucleonics divisions of Scintrex with its own chemical detection unit.
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