The board of directors at Wegener Corp., provider of digital systems for IP data, video and audio, unanimously rejected Radyne ComStream's $1.55 per share cash "unsolicited hostile offer" for all outstanding shares of its common stock, saying it was "grossly inadequate and unfair" to Wegener's stockholders.
Ultimately deciding that now is not the time to sell the company, Wegener's CEO and chairman noted that, "None of us has been satisfied with the performance of the company's stock price over the last couple years, and our stockholders no doubt have shared our frustration...Nevertheless, we view hostile actions like those taken by Radyne simply as an opportunistic attempt to acquire a good company whose stock is undervalued."
Bob Fitting, CEO of Radyne Comstream had characterized the acquisition of Wegener as "an excellent strategic fit, with complimentary products and distribution networks and an opportunity to grow and create shareholder value through synergies and cost savings of combining the two companies."
Wegener's board believes that its stockholders are better off following its plan for independent growth and adopted a stockholder rights agreement preserve the long terms value of the company for its stockholders. Wegener is marketing the new iPUMP, MediaPlan and COMPEL family of products and other products it has begun shipping into the HDTV market.
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