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Prospect News home > News index > List of issuers Z > Headlines for Zones, Inc. > News item |
Zones ends go-shop period with no buyers, looks to close acquisition by CEO
By Lisa Kerner
Charlotte, N.C., Dec. 2 - Zones, Inc. said none of the six potential partners contacted during its additional go-shop period were interested in pursuing a transaction likely to lead to a takeover proposal as an alternative to the planned merger with Zones Acquisition Corp., which is owned by Zones chief executive officer Firoz Lalji.
Cascadia Capital, LLC assisted in the go-shop process, according to a Zones news release.
Zones said it intends to continue working with Zones Acquisition to complete the merger in "a timely manner."
As previously reported, a special meeting of Zones shareholders was adjourned to Dec. 19 to give shareholders time to consider Lalji's reduced offer price for the company of $7.00 share. The previous offer was $8.65 per share.
Lalji believes the surviving corporation may not remain within the lender's financial covenants if it borrows the previously contemplated amount of debt financing required for the deal at the $8.65-per-share price.
The merger is expected to close by Dec. 31.
Zones is a single-source direct marketing reseller of name-brand information technology products. The company is located in Auburn, Wash.
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