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.
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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.
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By GlobalDataOn Thursday, Methode said it was proceeding with its plan, Bloomberg News added.
