Bel Comments on Letter from Technitrol; May Purchase Shares of its Class A Common Stock
Bel Fuse Inc. commented on the letter it received from Technitrol, Inc. (see 3/26 PowerPulse story) offering to acquire Bel for $40.30 per share in cash. Bel’s Board of Directors believes that Technitrol’s proposal significantly undervalues Bel’s stock, especially considering Bel’s cash and cash equivalents of approximately $92 million at December 31, 2006. While the Board is discussing all of its options with its investment bankers in light of Technitrol’s letter, it is confident in the plans management has implemented for the company’s growth, including its acquisition strategy, and believes that a stock buyback program is in the best interests of Bel’s shareholders.
Accordingly, Bel announced that, pursuant to the authorization provided by Bel’s Board in 2000 to purchase up to 10% of the company’s outstanding common shares, it may commence purchasing up to 1,100,000 shares of the company’s Class A Common Stock from time to time in privately negotiated transactions or in the market. To date, a total of 23,600 shares of Bel’s Class B Common Stock have been purchased under the 2000 Board authorization. Any purchases will be funded from the company’s working capital and will be made in management’s discretion.
As a result of the purchases, the percentage of the Class A Common Stock owned by Daniel Bernstein (Bel’s CEO and a Director), Howard Bernstein (a Director of Bel and Daniel Bernstein’s uncle) and the estate of Elliot Bernstein (Bel’s founder, who was Daniel Bernstein’s father and Howard Bernstein’s brother) are expected to increase.
