Technitrol, Inc. announced that it has withdrawn its offer to purchase all of the shares of Bel Fuse Inc. for $43.00 per share in cash. Technitrol had sent a letter to Daniel Bernstein, President and Chief Executive Officer of Bel Fuse, on April 23,containing an offer to acquire Bel Fuse for $43.00 per share, or $514 million, in cash, subject to certain conditions. Technitrol also repeated its offer to include shares of its stock as part of the consideration.
Bel Fuse issued a response the following day, stating that its Board of Directors believed that Technitrol’s proposal, like its first proposal, significantly undervalued Bel’s stock. Bel’s Board expressed confidence in its management’s plans, including Bel’s acquisition strategy. While Bel confirmed that it is engaged in the bidding stage with respect to one potential acquisition, Bel declined to provide further details, citing its confidentiality obligations.
After receiving Bel Fuse’s response, Technitrol withdrew its offer. Technitrol commented that the company continues to believe that its offer represented value to Bel Fuse shareholders superior to what Bel Fuse could have created alone for the foreseeable future. Technitrol stated that it "now considers Bel Fuse’s failure to negotiate in good faith to be a matter between Bel Fuse and its shareholders."
