Manischewitz Accepts Bid by Investor Group

Matzo maker B. Manischewitz Co. said Thursday that it has agreed to a sweetened takeover bid by a Beverly Hills investment firm that topped a “best and final” offer from a rival kosher products firm.

Manischewitz late Wednesday accepted an offer of $841 a share, or $44.6 million, by Levine, Tessler, Leichtman & Co. That bid surpassed by $1 a share an enhanced offer by National Foods, the distributor of Hebrew National products.

Last month, Jersey City, N.J.-based Manischewitz tentatively approved a $40.1-million acquisition offer from Levine Tessler. That agreement, however, was scuttled by a legal challenge that National Foods mounted to give it more time to put together a new deal.

In a prepared statement, Manischewitz said the new Levine Tessler bid not only was higher than National Foods’ revised offer, but also could be completed sooner. Manischewitz said the company plans to hold a shareholders meeting July 14 or soon thereafter to vote on Levine Tessler’s offer.

A National Foods investment adviser could not be reached Thursday, and Arthur E. Levine, chairman of Levine Tessler, declined to comment.

The higher bid appeared to be a victory for Jeffrey M. Herr, a longtime Manischewitz director who had frequently cast the sole dissenting vote in board meetings held to consider Levine Tessler’s proposed deal. He had contended that the offer was too low and was unfair to shareholders.

Manischewitz, founded 101 years ago by a rabbi in Cincinnati, makes a full line of kosher foods for Passover and daily use. In addition to matzo, the products include gefilte fish, borscht and chicken and vegetable soups. Since 1933, the Manischewitz name has also been licensed for use on wine.

For the year ended July 31, 1988, Manischewitz reported net income of $2.9 million on sales of $30.1 million.