It's 1, 2, 3 strikes you're out for Topps (TOPP)

Posted Aug 23rd 2007 4:43PM by Eric Buscemi
Filed under: Deals, Management

Three proxy advisers have now spoken out against the $9.75 private equity offer for Topps Company Inc (NASDAQ: TOPP). What an ugly mess this has become -- playing out much more like a soap opera than a day at the ballpark. Let's review:

In March, Topps gets an offer to be acquired for $9.75 a share from an investment group led by Michael Eisner's Tornante Co. and Madison Dearborn Partners.
Topps agrees to the offer.
In May, Upper Deck steps to the plate with a $10.75 a share counter offer.
Yesterday, Upper Deck withdraws its offer based on "flawed" negotiations from Topps.
Topps files with the SEC today, saying Upper Deck misled the company with its offer.

Topps is now due to vote on the original offer from the investment group, but three proxy adviser firms -- Proxy Governance, Institutional Shareholder Services and Glass Lewis & Co, have all recommended rejecting the deal.

Wedbush Morgan said in June that they believe Topps shares are worth between $11.50 a $12.00. With that in mind, along with the proxy firms' lack of support, the chances of this deal getting done for under $10 a share are not looking realistic.

Tags: acquisition, agreement, buyout, deal, inthenews, madison dearborn, MadisonDearborn, michael eisner, MichaelEisner, topp, topps, tornante, upper deck, UpperDeck