GTSI again rejects suitor’s takeover bid
Board of directors calls Eyak offer 'grossly inadequate'
- By David Hubler
- Sep 14, 2010
The board of directors of GTSI Corp. has again rejected an unsolicited takeover proposal by Eyak Technology LLC to acquire GTSI for $7.00 per share in cash.
“The board unanimously determined that the proposal is grossly inadequate and not in the best interest of the shareholders of GTSI,” a company statement said.
The board communicated its response to Eyak Technology LLC in a letter sent to its chairman and CEO on September 13.
“As previously communicated to you, your proposal also raises serious and substantial issues under the Eyak Technology Operating Agreement pursuant to which GTSI owns 37 percent of Eyak Technology’s membership interests,” the letter said.
“The GTSI Board strongly and unanimously believes that GTSI has a bright future as an independent company and nothing in your September 13, 2010 letter adds anything to your prior proposal nor provides the basis for GTSI to alter its course. Accordingly, we do not believe the proposed transaction is in the best interests of our shareholders.”
The letter was signed by board chairman John Toups.
GTSI initially rejected the $7-a-share offer Aug. 30, two weeks after Eyak, an Alaska Native-owned small business, made the proposal. It reiterated the offer on Sept. 13.
GTSI, of Herndon, Va., ranks No. 59 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors. Eyak, of Anchorage, ranks No. 65.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.