GenTek Inc. Receives Proposal to be Acquired
Thursday October 4, 3:30 pm ET
PARSIPPANY, N.J., Oct. 4, 2007 (PRIME NEWSWIRE) -- GenTek Inc. announced today that it has received an unsolicited letter dated October 2, 2007 from funds managed by Abrams Capital, LLC, a principal stockholder of GenTek, informing the Company of its interest in pursuing a transaction by which the Abrams Funds would offer to purchase all outstanding shares of the GenTek common stock for $33.50 per share in cash on a fully diluted basis assuming the exercise of all outstanding GenTek warrants. The letter states the proposal is not subject to financing conditions. According to the letter, the Abrams Funds beneficially own approximately 2.5 million shares of GenTek common stock, which includes approximately 1.35 million shares issuable upon the exercise of warrants.
In reviewing the proposal, GenTek's Board of Directors first noted that the Company is not for sale. The Board also considered the Company's progress in continuously executing and reviewing strategies for increasing shareholder value. Among other things, the Board noted the Company's success in disposing of non-core and under-performing assets, renegotiating the terms of its debt financing, the redemption in full of its second lien term loan, the continuation of voluntary pre-payments on the Company's first lien term loan, and the recently announced stock re-purchase program. In addition, the Board reviewed the consistent improvements in General Chemical's operating results and the anticipated positive future impact of new business awards and manufacturing efficiency improvements in GT Technologies.
In considering the proposal in the context of the Company's strategies for shareholder value maximization and the Company's future prospects, the Board concluded that the proposal from Abrams Capital is inadequate and does not fairly value the Company.
About GenTek Inc.
GenTek provides specialty inorganic chemical products and services for treating water and wastewater, petroleum refining, and the manufacture of personal-care products, and valve-train systems and components for automotive engines. GenTek operates 50 manufacturing facilities and technical centers and has approximately 1,400 employees.
GenTek's 2,000-plus customers include many of the world's leading manufacturers of cars and trucks, and heavy equipment, in addition to global energy companies and makers of personal-care products.
Source: Gen Tek Inc.
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