After cash offer, independent Michael Baker directors to review strategic options
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Michael Baker said today it has asked its independent directors to review the Moon engineering concern's strategic options after a private equity firm made a $24.25 per share cash offer for the company.
In a statement, the company said the review will not be limited and "there necessarily can be no assurance that the company will pursue any particular course of action."
Houlihan Lokey, an investment banking firm, and the law firm of Jones Day will advise the committee.
Baker made the announcement before Wall Street opened.
DC Capital Partners of Alexandria, Va., which owns 5.2 percent of Baker's shares, made a $24.25 per share offer for Baker on Dec. 19. A week later, Crescendo Partners of New York, another activist shareholder, pressured Baker to put itself up for sale, threatening a proxy fight if it did not do so.
Several analysts have said DC Capital's offer is low, given Baker's cash position and clean balance sheet.
Baker shares closed Monday at $24.90, up 45 cents. They are up 14 percent since DC Capital made its proposal.
Baker is in the process of searching for a replacement for president and chief executive officer Bradley L. Mallory, who resigned suddenly Dec. 13 at the request of Baker's board.
First Published January 7, 2013 9:26 am