Eyak pulls back takeover bid for GTSI

Eyak Technologies this morning withdraw its bid to purchase GTSI Inc. through a stock purchase deal.

The move comes in the wake of a steep decline in GTSI stock Monday morning dropping to $4.35 a share from Friday’s close of $7.25 on the Nasdaq exchange.

The decline followed Friday’s letter from the Small Business Administration to GTSI temporarily suspending the contractor from pursuing new government contracts, alleging GTSI had used small businesses, including Eyak, to win contracts and funnel the money to GTSI, instead of the small business.

GTSI has said it will contest the SBA charge.

Eyak said it is evaluating the effects of the SBA’s decision on GTSI, the Associated Press reported.

Last week Eyak had increased its original bid of $7 a share to $7.50, but GTSI’s board of directors rejected both bids, and vowed to fight the takeover.

GTSI, of Herndon, Va., ranks No. 59 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors. Eyak Technologies, of Anchorage, ranks No. 65 on the list.