Singer Co. Directors Approve Bilzerian’s $1-Billion Takeover

Singer Co. said its board Wednesday agreed to a $1.06-billion takeover of the defense electronics firm by investor Paul Bilzerian.

Bilzerian bid $50 a share for Singer, which at first resisted his overtures but gave in when no other suitor emerged with a better offer.

Singer shares closed at $49 Wednesday, up 50 cents from Tuesday.

Singer said its board recommended that shareholders sell their stock to Bilzerian.

Bilzerian and his backers, grouped as Singer Acquisition Co., a unit of Bilzerian Partners Ltd. Partnership 1, own about 9.9% of Singer.

His tender offer was extended to Jan. 21. Singer Acquisition said that as of Jan 12., 11,147,568 Singer common shares had been tendered and not withdrawn. Singer has about 21.05 million shares outstanding.

Singer said its board decided that Bilzerian’s offer was fair and in the best interests of the company’s common shareholders. But it said that if the tender is not closed by Feb. 4, Singer has the option of terminating the agreement after that date.

Last month, Singer said it did not think Bilzerian could get the financial backing he needed for his proposed hostile takeover. But last week, Bilzerian announced he had completed his efforts to get backing, accepting about $150 million in commitments from T. Boone Pickens Jr., another corporate raider.

He had previously announced commitments for $895 million.

Bilzerian has said he would see about selling Singer’s defense business, which has accounted for about 80% of its revenues.

Bilzerian has earned in the past two years a reputation for mounting takeover bids that failed but which netted him substantial profits. Among his targets were Hammermill Paper Co., Pay ‘N’ Pak Stores Inc. and Allied Stores Corp.