Falken Industries Ltd to Counter Norex Takeover Bid
13 Dicembre 2010 - 10:00PM
Marketwired
Falken Industries Ltd (OTCBB: FLKI) said today that acting on
recommendation of Capprocon its valuation consultants, that it will
review, in light of an immediate counter-offer the $1.50 per share,
control conditioned, takeover bid received from Norex International
and which it considers at least preliminarily insufficient.
Falken Industries Ltd a leading global manufacturer of consumer,
professional and industrial products whose best known branded
product conceptions are the Clean Plus® Group, see
www.cleanplus.com announced on October 19, 2010 that it had
received notice from Norex International, that the latter would
seek to acquire a controlling position in the company at $1.50 per
share. Norex is a key supplier of Falken and well placed to
appreciate the company's activity and potential. Falken's
management advised that it would take no action inconsistent with
shareholder interest. On November 18 Falken announced the retention
of Capprocon a European Consulting Firm to conduct a proper
valuation and that it would not officially respond on the bid until
its review process is complete. "Falken's board will make a
recommendation when the due diligence on both sides is completed on
or about March 31, 2011, and any interim counter offers formulated
and considered," Manuel Garcia, the company's communication
officer, said. The attempt by a Falken key supplier to seek a
control position was not expected.
A spokesman at Falken indicated that the offer, all considered
was at least 20 percent below what it expected a proper valuation
to return. Manuel Garcia indicated that some members of management
have called the offer "ludicrous," saying it significantly
undervalues the company. Falken has refused to speculate on what a
control position is really worth and indicated that it would not
officially comment on what it would be willing to recommend. Norex
said it currently has the only offer on the table. Corporate
analysts predicted that Falken may accept a bid based on a
meaningful premium, perhaps to $ 1,80 per share. "Everyone fully
expects that Norex will make a revised offer in the coming weeks or
months," said Garcia.
"Falken has been the target of competitor interest in the past
and these behemoth companies may be contemplating offers of their
own," said Garcia.
About Falken Industries Ltd :
Falken Industries Ltd (OTCBB: FLKI) is a diversified industrial
conglomerate that operates in Chemicals, Wet Wipe and Biodegradable
Technology. Falken Industries Ltd is the concept behind more than
160 products distributed through a network of global platforms and
the recipient of trade awards for innovations, biodegradability and
environmental and health quality standards.
SAFE HARBOR STATEMENT: This news release contains
"forward-looking statements" made pursuant to the safe harbor
provisions of the 1995 Private Securities Litigation Reform Act.
"Forward-looking statements" describe future expectations, plans,
results, or strategies and are generally preceded by words such as
"future," "plan" or "planned," "will" or "should," "expected,"
"anticipates," "draft," "eventually" or "projected." Such
statements are subject to risks and uncertainties that could cause
future circumstances, events, or results to differ materially from
those projected in the forward-looking statements, including the
risks that our products may not achieve customer acceptance or
perform as intended, that we may be unable to obtain necessary
financing to continue operations and development, and other risks.
You should consider these factors in evaluating the forward-looking
statements included herein, and not place undue reliance on such
statements.
Contacts: Falken Industries Ltd Manuel Garcia Communications
Officer +1609 357 0316 mgarciafaure@falkenltd.com
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