Automotive parts supplier DURA Automotive Systems on Monday said Monday it has extended its offer to purchase all outstanding Class B shares of Methode Electronics for $US 50 per share and the offer, originally scheduled to expire on Monday, will now expire on September 2, Bloomberg News reported.
The news agency noted that, earlier this month, Dura had sweetened its offer to buy control of Methode after Methode advised stockholders to reject the original bid of $23 a share.
Bloomberg News said Dura would also pay Methode Class A shareholders 35 cents a share and, after Dura takes control, they would get an additional 26 cents a share from Methode.
The news agency noted that the Class B shares represent less than 1% of all Methode shares, but come with the right to elect 75% of the company’s board.
Bloomberg News cited a Friday Chicago Tribune report which said Methode had been trying free itself of control by founder William McGinley’s heirs by buying back Class B shares under an agreement with the family that calls for paying holders $23.55 a share, well below Dura’s $50 offer.
On Thursday, Methode said it was proceeding with its plan, Bloomberg News added.
