Belden sticks to RuggedCom offer despite snub
(Reuters) - U.S. Cable maker Belden Inc (BDC.N: Quote) reaffirmed its C$22 a share offer for RuggedCom Inc RCM.TO, after the Canadian rival recommended its shareholders reject the hostile bid.
Belden also said it plans to move Canadian regulators to block the poison pill that RuggedCom had adopted last week to thwart Belden's bid.
"The recommendation contains no information of substance that was not already taken into account in formulating our original valuation and offer price," Belden chief executive John Stroup said in a statement.
On Wednesday morning, RuggedCom said it was evaluating alternatives to Belden's all-cash offer and had entered into non-disclosure agreements with third parties inclined to strike deals with the company.
Belden made its first bid on December 19, following which RuggedCom set up a special committee to review the offer and later adopted a shareholder rights plan.
Shares of RuggedCom were trading at $24.75 on Wednesday on the Toronto Stock Exchange. The stock has risen 9 percent since the Belden bid. Belden's stock were down 23 cents at $35.04 on the New York Stock Exchange.
(Reporting by Abhiram Nandakumar in Bangalore; Editing by Maju Samuel and Sriraj Kalluvila)
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