Eyak pulls back takeover bid for GTSI

Withdrawal of offer follows GTSI's steep stock decline

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.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

Reader Comments

Thu, Oct 7, 2010 Donald L. Richardson Sr. Washington, DC

Isn't it odd that Eyak (ANC) was trying to take over GTSI and they were one of the contractors involved. And isn't it odd that most if not all of the executives were originally from GTSI.

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