According to the Milwaukee Journal Sentinel, the hostile takeover bid that has loomed over Madison-based Promega Corp. has taken a new turn.
The Journal Sentinel says representatives from a global investment banking firm are reaching out to Promega shareholders to tell them an investor group’s offer is lower than it should be.
Shareholders Ted Kellner, a Milwaukee businessman, and Nathan Brand, a Miami resident with Madison ties, launched a hostile takeover bid for the company earlier this year. As part of the offer their investor group presented, they initially valued the company at $1.25 billion.
However, a different investment firm is now telling shareholders that Kellner and Brand’s $625-a-share offer is less than that of comparable industry transactions by several times over.
Promega founder William Linton owns more than 40% of the company’s shares, and the company reportedly has between 300 and 400 shareholders. The company also has a right of first refusal that allows it to buy shares being offered before anyone else can buy them.
