Group Hints Its Interest to Buy EECO in Santa Ana

A group of Minnesota investors has acquired a 5.5% stake in EECO Inc. and has suggested to EECO’s management that it consider selling the company.

But Robert Bonney, chairman of the Santa Ana computer equipment company, said Thursday that talks with the group were not serious “and now is not the time to talk about selling the company.”

In a filing with the Securities and Exchange Commission, the group said it talked with EECO management about a possible sale of the company, but no serious discussion followed. The investors said they have no current plan to purchase EECO themselves, but might consider doing so in the future.

The group said it intended “to monitor closely EECO’s operations and may seek, at some point in the future, a more active interest in the management of the company,” according to the filing.

The group includes Robert Fink of Mendota Heights, Minn.; Edmar Fink of Lilydale, Minn., and Marc H. Kozberg of Hokins, Minn. They hold a combined total of 221,400 EECO common shares, for which they paid $1.2 million, according to the SEC filing.

EECO’s Bonney said he doubts the company’s other major shareholders, including himself, would be willing to consider selling the company now because its stock price “has been depressed.” Bonney owns just under 7% of EECO’s stock.

“Offhand, I don’t think they (the Minnesota) group would be able to get control of the company,” Bonney said.

EECO lost $3.2 million on sales of $13.8 million for the second quarter ended July 2. The company has lost $4.7 million in its latest six months.

The Santa Ana firm manufactures hotel computer systems and computer key pads and switches.