Kollmorgen Bids for Pacific Scientific
Kollmorgen Corp., a Waltham, Mass.-based maker of motors and controls, on Monday made a hostile $20.50-a-share tender offer for its wayward industry peer, Pacific Scientific Co., sending the Newport Beach company’s stock soaring.
Kollmorgen said it made the cash-and-stock offer, valued at $264 million, after its efforts to merge the two companies were rebuffed by Pacific Scientific.
The company said it is seeking a special shareholders meeting to consider ousting Pacific Scientific’s board and electing a new slate to evaluate its offer.
The company also said it filed suit Monday to make sure shareholders get the chance to vote on the proposal.
Gideon Argov, Kollmorgen’s chairman, chief executive and president, said he hopes talks between the companies turn friendly but that “it takes two to tango.”
A Pacific Scientific spokesman said the company’s board expects to issue a response by Friday and will advise shareholders to take no action until then.
The board will also respond to Kollmorgen’s unsolicited call for shareholders to approve the holding of a special meeting, the spokesman said. The offer, set to expire Jan. 14, would give Pacific Scientific shareholders a 43% stake in a combined enterprise.
Pacific Scientific’s stock jumped more than 42% Monday to a 52-week high of $22, a gain of $6.56, on the New York Stock Exchange. Kollmorgen shares rose $1.63 to close at $18.50, also on the NYSE.
Argov said the two companies’ businesses in motors and controls would mesh well. The product lines, which power everything from factory packaging machines to health club treadmills, generally complement each other, he said.
He stressed, however, that Kollmorgen wouldn’t dispose of Pacific Scientific’s other products in Southern California, including lighting, detection devices for particles and aerospace products.
