Shareholder unhappy with Quadrangle's offer price for Greenfield Online, pushes for auction

By Lisa Kerner

Charlotte, N.C., June 27 - Greenfield Online, Inc. investor Pennant Capital Management, LLC said that while it supports the sale of the company to Quadrangle Group LLC, it is disappointed with the $15.50-per-share valuation for the company.

In a June 26 letter to Greenfield Online, Pennant Capital urged the company's board of directors to execute a full auction process and to pursue potential buyers of Greenfield Online's two distinct business segments.

Pennant Capital said Greenfield Online shareholders could then evaluate alternatives to a going-private transaction, such as selling only one of the segments and remaining a public entity.

The letter was included in a schedule 13D filing with the Securities and Exchange Commission.

Pennant Capital noted in the letter that the "Quadrangle transaction multiple is inadequate in light of the approximate 20x EBITDA multiple of recent transactions for companies in the comparison shopping business."

Greenfield Online agreed to be acquired by an entity affiliated with private investment firm Quadrangle for $15.50 per share in cash, or a total equity value of approximately $426 million, it was previously reported.

The offer price is a 17% premium over Greenfield Online's closing share price of $13.28 on June 13 and a 26% premium over the average closing share price during the prior 30 days, a prior news release stated.

Wilton, Conn.-based Greenfield Online provides internet survey and comparison shopping solutions primarily in North America and Europe.

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