TORONTO--(BUSINESS WIRE)--Undeterred by Westborough Financial Services’ (WFS) Board rejection of his February 28, 2007, offer of $40.00 per share, Marc Bistricer today, in a letter to CEO Joe McDonough and the WFS Board of Directors, increased his offer to $41.00 per share of the minority WFS shares. Additionally, in response to the concerns of the WFS Board, Bistricer’s new offer indicates his willingness to accept some form of minority representation on the WFS Board and reduce the due diligence period from acceptance of the proposal.
As a significant shareholder, Bistricer was shocked when WFS CEO Joe McDonough and his Board of Directors took 20 days to respond to his initial offer of $40.00 per share and then summarily rejected the offer without the courtesy of a meeting. Inexplicably, the Board dismissed the Bistricer offer in favor of a proposed merger with Assabet Bank, a deal that would sell WFS shares at the paltry rate of $35.00 per share, a number that represents less than 70% of the per share book value of WFS Common Stock.
“Mr. McDonough and his board engineered a merger deal that is harmful to the interests of WFS minority shareholders.” said Keith Zakheim, a spokesperson for Mr. Bistricer. “We thought that the days of coercive minority squeeze-outs and self-interested management buyouts were over. Unfortunately, this is proof that they are not.”
“In light of the Board’s rejection of his proposal,” Zakheim added, “Mr. Bistricer is currently evaluating all commercial, legal, and administrative remedies and options to prevent the continuation of a merger transaction that is unfair, unreasonable, and constructed by a Board that is in gross dereliction of their fiduciary responsibilities.”