American Capital terminates $46 million merger agreement with Merisel

By Lisa Kerner

Charlotte, N.C., June 11 - Counsel to American Capital Strategies, Ltd. notified Merisel, Inc. that it is exercising its right to terminate the companies' merger agreement effectively immediately.

The voting agreement was automatically terminated as a result, a schedule 13D filed with the Securities and Exchange Commission said.

As of June 9, Tu Holdings, Inc. and American Capital beneficially own no shares of Merisel, the filing noted.

According to counsel's letter, Merisel experienced a company material adverse effect and is not able satisfy the agreement's closing conditions.

On June 6, Merisel disputed American Capital's earlier claim that it had experienced a material adverse effect and said it expected American Capital to consummate the merger, citing the $3.5 million reverse termination fee payable to Merisel.

Merisel, a New York visual communications solutions company, agreed to be acquired by American Capital affiliate Tu Holdings for $5.75 per share in cash, or some $46 million, a prior news release stated.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.