Myron Wentz, the founder and chairman of Usana Health Sciences (NASDAQ: USNA) has elected not to pursue his previously announced tender offer to acquire the company at $28 per share.
In a press release announcing the move, Wentz's group explained that "After further reviewing the results of the offer and receiving additional feedback from shareholders, it became clear that the purchaser would not receive tenders of a sufficient number of shares to satisfy the non-waivable condition to the offer that the purchaser own at least 90% of the outstanding shares following the completion of the offer."
A shareholder had asked a judge to enjoin Wentz from completing the offer on the grounds that it was too low and that Wentz had not provided shareholders with information necessary to determine the company's value. The judge granted a temporary injunction, but the termination of the offer concludes the matter.
The stock fell more than 12% to close at $24.43 today, and investors appear to be wary of Usana's prospects given all the questions about the company and its business mode raisedl by Barry Minkow's Fraud Discovery Institute.
I think anyone who has read the report that was dismissed -- but not rebutted in any meaningful way by Usana brass -- would have a tough time investing in this multi-level marketing seller of vitamins.
Usana founder pulls offer to take company private
Posted Jul 16th 2008 5:45PM by Zac Bissonnette
Filed under: Deals, Management
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