Hypercom Takeover Offer
On September 29, 2010, VeriFone Systems, Inc (NYSE: PAY) sent a letter to Hypercom Corp.' (NYSE: HYC) Board of Directors, making a public takeover bid of $5.25 per outstanding share. The letter, from CEO Douglas Bergeron, also noted that they had previously offered 0.21x of PAY shares for that company.
The new offer would be a lower one than the original, and Bergeron noted in his letter that "...we are disappointed in your failure to engage in a meaningful discussion regarding our September 24 proposal." He continued that the offer was "an exceptional premium of 52% over the closing price of your shares on September 23 and 69% over the average share price for the thirty trading days prior to our proposal."
PAY has engaged J.P. Morgan Securities as their financial advisor and Cromwell LLP as their legal counsel in the transaction.
The new offer would be a lower one than the original, and Bergeron noted in his letter that "...we are disappointed in your failure to engage in a meaningful discussion regarding our September 24 proposal." He continued that the offer was "an exceptional premium of 52% over the closing price of your shares on September 23 and 69% over the average share price for the thirty trading days prior to our proposal."
PAY has engaged J.P. Morgan Securities as their financial advisor and Cromwell LLP as their legal counsel in the transaction.
