Intermix sticks with Murdoch
PrintRival bid kicked into touch
Posted in Financial News, 27th September 2005 09:07 GMT
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Intermix, the company behind MySpace, has rejected a rival offer from ex-CEO Brad Greenspan.
The board of directors agreed unanimously to reject his offer and stick with Murdoch's offer. The board said Greenspan's offer was unlikely to be superior to that from NewsCorp.
Reasons for the rejection include: Greenspan's offer was for only one half of the common stock. He would need to raise about $300m to fund the takeover but has no credible funding sources. Grrenspan offered £13.50 a share, more than Murdoch, but for only half the stock - the rest would be converted into shares at a later date.
Greenspan's bid "offers significantly less certainty of closing and would, even if consummated, take months to complete".
Intermix's board of directors also rejected the offer because the return of Greenspan to Intermix "could create morale issues....and potentially harm the company's business". Greenspan was asked to leave as CEO when the company's shares were at $2 each and it was under investigation by the SEC.
The board also decided to adjourn the company meeting, being held 28 September, and reconvene it 30 September to give shareholders a chance to make up their minds. Read the full board statement here®
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