Calvary Holdings’ Effort to Buy Diceon Electronics Bogs Down


Calvary Holdings LP said Wednesday that Diceon Electronics Inc. stockholders have tendered only 26% of the company’s shares to Calvary’s $5.25-a-share buyout offer.

“This tells me they aren’t getting anywhere on the tender offer,” said Gerald Fleming, an analyst with Fahnestock & Co., a New York investment firm. Diceon management controls 35% of the Irvine-based company’s stock, he said, “and Calvary needs to get at least 50%" for its offer to succeed.

Calvary, based in San Diego, said that, as of Jan. 7, about 1.23 million of Diceon’s 5.1 million common shares were tendered under its $27.2-million offer for the printed circuit-board manufacturer.

Diceon stock closed Wednesday at $3.375 per share, down 12.5 cents and well below Calvary’s $5.25-a-share bid.


Fleming said some investors are skeptical about Calvary’s ability to finance the acquisition. After originally recommending to clients to surrender their shares to Calvary, he is now advising them to hold the stock until Calvary announces financing arrangements.

But Calvary said in a statement that it is “very encouraged” by the response to its offer. “Many institutions have not yet made any decision, anticipating the extension of the offer until after Diceon’s annual meeting,” the firm said.

Calvary has extended the deadline on its offer--originally set to expire last Monday--until after Diceon’s annual shareholders meeting on Jan. 23.