Canadian News
Cossette Provides Update On Cosmos' Offer - Quick Facts
11/20/2009 5:45 PM ET
(RTTNews) -
Cossette Inc. (KOS.TO: News ) announced that it is providing an update on its strategic review process following the announcement by Cosmos Capital Inc. on November 17 that it would amend its offer launched on October 30.
The company stated that while Cosmos' amended offer of $7.87 was announced publicly on November 17, the Chairman of the Special Committee of the Board of Cossette simultaneously received a letter from Cosmos informing the Special Committee that Cosmos was prepared to further increase the offer price to $8.10, which was not disclosed publicly by Cosmos.
Under the merger agreement with Mill Road, Cossette can only engage in negotiations with, or provide information to, a person making a bona fide written "acquisition proposal" if the Board has determined that it constitutes, or could reasonably be expected to lead to, a "superior proposal" within the meaning of the merger agreement. The company said, in order to allow the Board to make such an assessment, the legal advisor to the Special Committee sent a letter on November 19 to Cosmos' legal advisors requesting the details, such as the rationale as to why Cosmos believes it can increase its offer price to $8.10. The Special Committee reviewed responses, but were found to be incomplete.
The company said its board requires further information to determine whether Cosmos' proposal at $8.10 per share could reasonably lead to a superior proposal.
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by RTT Staff Writer
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