SCIENCE / TECHNOLOGY : Newport Electronics Board Endorses Sensor Control’s Merger Tender Offer

Newport Electronics Inc.’s directors Monday endorsed a tender offer and merger proposal from Sensor Control Corp., saying it is superior to a sweetened offer from a rival bidder.

Sensor, a Silicon Valley maker of heat and pressure sensors, is offering to buy 43% of Newport’s outstanding shares for $9.75 each, and to buy the remaining shares for $9 each.

Newport officials said the Sensor offer is better than one made by Connecticut investor Milton B. Hollander. On July 26, Hollander offered to pay $11-a-share for 35% of Newport’s stock.

Newport previously rejected a $9.50-a-share offer from Hollander. Hollander owns or indirectly controls about 13% of Newport’s stock.

In a statement, Newport said its board supports the Sensor merger because the panel “still believes the potential acquisition of all the shares of common stock, instead of the partial tender offer for only approximately 35% . . . is in the best interest of the company’s shareholders.”

“We’re recommending the proposed merger” with Sensor, said Norman Gray, Newport’s director. “But this is a decision that each individual shareholder has to make.”

Shareholders will vote on the merger in early September.