After the Captaris Inc. (Nasdaq: CAPA) rejection of a $4.75 per share buyout offer from private-equity firm Vector Capital, the deal has been killed and has been responded to in a formal letter. This merger was noted as having represented a 36% premium.
Vector Capital sent a letter to the Captaris Board of Directors emphasizing their disappointment and surprise at the rejection despite the approval by major shareholders for the transaction. The letter also made very clear that Vector's $4.75 offer and other terms have since expired and should not be considered in Captaris' search for superior offers.
By now we have gotten used to deals blowing up on the larger companies. But the market cap on this deal is only $110 million. The problem is that Captaris has recently traded over $6.00.
The Board of Directors would have potentially faced a shareholder revolt or suit had they approved this deal. That doesn't mean anything is going to be that much better, but sometimes companies can't fold just because they have an offer.
Another private equity bid gets snubbed (CAPA)
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