Business
Pulse announces mailing of Directors' Circular rejecting Seitel Offer
Pulse announces mailing of Directors' Circular rejecting Seitel Offer.
About this update from Pulse Seismic Inc.
[{"type":"text","content":"\n\n\n\nTSX: PSD\n\n\nCALGARY, Aug. 28 /CNW/ - Pulse Data Inc. ("Pulse" or the "Company")\nannounces that it has mailed to its shareholders and optionholders its\nDirectors' Circular recommending the rejection of the offer by 6818862 Canada\nInc., an indirect wholly-owned subsidiary of Seitel Inc., to purchase all of\nthe common shares of Pulse for $3.10 per share (before deducting the dividend\nof $0.0375 per share payable in September) (the "Seitel Offer"). The\nDirectors' Circular has also been posted on SEDAR at www.sedar.com and on\nPulse's website at www.pulsedatainc.com.\n\n\nAs previously announced the Board of Directors believes that the Seitel\nOffer is inadequate and is significantly below the value of the Pulse shares.\nThe Board unanimously recommends that Pulse shareholders reject the Seitel\nOffer and not tender their Pulse shares to the Seitel Offer. Shareholders are\nurged to read the full reasons for the Board's unanimous recommendation\ncontained in the Directors' Circular.\n\n\nThe Directors' Circular also contains information concerning certain\nprior offers and prior valuations.\n\n\nThe Board is highly confident in the future of Pulse and the continued\nsuccess of its business plan, which is strongly supported by Pulse's\nexperienced management team, top-performing sales force and excellent\nreputation within the oil and gas industry. The Board has also formed a\nSpecial Committee of independent directors to review strategic alternatives\nfor Pulse to enhance shareholder value, and has retained William Blair &\nCompany to act as financial advisors to solicit interest from other parties to\ndetermine if superior competing offers or alternative proposals are available.\nA number of potential buyers have been contacted and a number of them have\nentered into confidentiality and standstill agreements providing them with\naccess to non-public information in respect of Pulse.\n\n\nPulse also announces that with respect to the Seitel Offer, the Board of\nDirectors has deferred the Separation Time of the rights issued under the\nShareholder Rights Plan until September 21, 2007.\n\n\nDisclaimer: Certain information contained herein may constitute\nforward-looking statements under applicable securities laws. Such statements\nare subject to known or unknown risks and uncertainties th...