Intertape shareholders reject $500-million buyout offer

30 Jun 2007

Intertape Polymer Group shareholders, on Friday, rejected a $500-million takeover bid by private equity firm Littlejohn & Co, by a vote of nearly 70 per cent. The shareholders also voted in a new board of directors, with Eric E Baker as board chairman and Melbourne F Yull as executive director, two of the dissidents'' proposed directors.

The company had urged shareholders earlier this month to consider a $4.76-per-share takeover offer from Littlejohn & Co. The proposed deal, valued at about $500 million including debt, was announced in May. The company''s markets include building and construction, automotive, aeronautical, and food and beverage, among others.

The voting, originally scheduled for 25 June, was postponed to 28 June to give more review time to shareholders. Altacap Investors Inc, the shareholder that controls 6789536 Canada, had asked the voters to reject the deal, and prompted them to elect Baker, who has been Altacap president, and Yull, the former Intertape Polymer chief executive.

Intertape Polymer Group shares fell to $4.58, down by 16 cents, in morning trading. The stock has been down 10 per cent since the start of the year.