Manufacturers

Despite possible hurdle, Belden pursues RuggedCom acquisition

When Belden made an all-cash offer to acquire RuggedCom of Concord, Ont., Canada for C$22 (Canadian dollars) on Dec. 19, 2011, the company pointed out that the target company’s stock had traded for $13.61 the Friday before. The $22 offer was a 62% premium for holders of RuggedCom stock.

 

That offer did not impress the RuggedCom board, which advised shareholders to reject the offer. The board also sought to adopt a “poison pill” defense against the attempted take-over, as explained in an article on Reuters.com.

 

Last week, Belden asked regulators in Ontario to meet no later than Jan. 23 to look at whether that “poison pill” plan is legal under Canadian rules. Belden’s offer expires Jan. 25.

 

Belden’s offer amounts to $260 million in Canadian money; the Canadian dollar is currently trading at $1.0281 to the U.S. dollar. The company says, “RuggedCom is a leading provider of rugged communications networking solutions designed for harsh environments, including those found in electrical power substations, oil refineries, military applications, intelligent transportation and metals and minerals processing.”

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