Cerberus commences BlueLinx offer
Cerberus ABP Investor commenced its tender offer for all the publicly held outstanding shares of BlueLinx Holdings today. The affiliate of Cerberus Capital Management, which currently owns 55.4% of the LBM distributor’s common stock, is offering $3.40 a share. The offer is set to expire at midnight on Aug. 27, 2010.
Based on filings with the Securities and Exchange Commission (SEC), Cerberus owns 18.1 million shares, and officers and director of the company own 3.02 million shares, excluding options. That leaves an estimated 11.5 million shares that Cerberus has offered to purchase to take the Atlanta company private.
The deal is contingent, however, on Cerberus owning at least 90% of the outstanding shares when the tender offer is complete, according to SEC filings.
Although the BlueLinx board of directors is required by the SEC to issue a recommendation to its shareholders, the board’s approval is not required for Cerberus to take over the company. The BlueLinx board has already appointed a committee to evaluate the Cerberus offer. A number of law firms are also threatening shareholder lawsuits in connection to the tender offer and the price of the stock.
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