Mergers & Acquisitions

Mergers & Acquisitions

August 09, 2011

UniTek Global Services Confirms Sending Unsolicited Proposal to Acquire Multiband

UniTek Global Services (News - Alert) has said that it had submitted an unsolicited proposal, on June 8, 2011, to the board of directors, senior management and top shareholders of Multiband Corp. to acquire the company for $4.50 per share in cash and UniTek common stock.

However in response, Donald Miller, chairman of Multiband, had said that “Multiband’s board of directors has considered the offer and we do not believe it is in the best interests of our shareholders. We will not have further dialogue about this matter.”

Discussions between Directors of UniTek and Multiband had begun earlier this year, much before the sending of the unsolicited proposal. Company officials said that the management believes that the proposed business combination would create value for shareholders of both companies.

Earlier this month, Austin W. Marxe and David M. Greenhouse, controlling principals of AWM Investment Company (AWM), filed a Schedule 13D with the U.S. Securities and Exchange Commission, disclosing ownership of 1,674,029 shares of Multiband common stock -- approximately 7.7 percent of the total shares outstanding.

In the 13D, AWM acknowledged receipt of an unsolicited copy of the June 8 Letter. It also included a letter dated August 3, 2011 sent by Messrs. Marxe and Greenhouse to Miller and CEO of the company, James L. Mandel, expressing their support of the proposed transaction.

AWM encouraged management of Multiband to immediately begin discussionswith UniTek regarding a potential business combination. It also suggested that the proposed terms in the June 8 Letter can be used as the basis of such negotiation.Peter Giacalone, chairman of UniTek, said that the company is continuing to executeon its growth strategy, focusing on a combination of strategic acquisitions and organic growth, and constantly seeking ways in which to increase shareholder value.

“We were disappointed by the Multiband Board's quick dismissal of our proposed offer and the inability to further explore this opportunity,” Giacalone said, adding that the company is currently not in discussions with Multiband’s management or Board related to a potential business combination.

UniTek Global Services is a provider of engineering, construction management and installation fulfillment services to companies specializing in the telecommunications, broadband cable, wireless, two-way radio, transportation, public safety and satellite industries.

Earlier, in April, the company announced acquisition of Pinnacle Wireless.

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Anshu Shrivastava is a contributing editor for TMCnet. To read more of Anshu’s articles, please visit her columnist page.

Edited by Rich Steeves

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