BIDZ.com signs merger agreement with Glendon
BIDZ.com could be acquired by Glendon.
BIDZ.com may be considering hiring merger and acquisition consultants to assist in its intended tie-up with Glendon Group.
The two enterprises have signed a definitive merger agreement, in which BIDZ.com would be bought for $0.78 (£0.49) per share in cash, or a 59.2 per cent premium over its closing price of $0.49 on May 16th.
Business negotiations were conduced on behalf of BIDZ.com by a board of directors' special committee, which consisted of legal and financial advisors, as well as independent individuals.
This group gave a unanimous approval to the proposed transaction and the board of directors agreed with this decision, although one individual abstained due to a personal interest in the deal.
If the acquisition goes ahead, it should be completed in the fourth quarter of this year and Glendon has sufficient equity to complete the purchase.
BIDZ.com "brings together the fragmented supply and demand of excess jewellery products in a single online location", the firm claims.
Posted by Ken Hayes
Source: BIDZ.com press release, May 17th