Recovered from the setbacks that saw a change of management, abandonment of manufacture of its own machines and conversion of its computer-aided design software for Sun Microsystems’ SunOS Unix, Daisy Systems Corp, Mountain View, is getting aggressive and seeking a major expansion with a hostile tender offer for 51% of Cadnetix Corp. It is offering […]
Recovered from the setbacks that saw a change of management, abandonment of manufacture of its own machines and conversion of its computer-aided design software for Sun Microsystems’ SunOS Unix, Daisy Systems Corp, Mountain View, is getting aggressive and seeking a major expansion with a hostile tender offer for 51% of Cadnetix Corp. It is offering $8 cash a share for 7.2m shares, or 11.7m if Cadnetix has completed its proposed acquisitions of HHB Systems Inc and Simucad Inc by the time of purchase, valuing Cadnetix at $112.9m, or $183.5m with the two acquisitions. If it gains control, it intends to exchange the balance of the shares for debt securities valued at $8 a share, but is prepared to pay $8 cash for all the shares if Cadnetix’s board will recommend the offer. It says it has about $50m cash available from working capital, and reckons it can raise whatever extra it might need for the all cash altern ative. It will be lucky to get Cadnetix for $8 a share: it repre sents a premium of only 75 cents over the price prior to the offer.
