Business
Pulse Data's Board recommends that shareholders reject Seitel Offer
Pulse Data's Board recommends that shareholders reject Seitel Offer.
About this update from Pulse Seismic Inc.
[{"type":"text","content":"\n\n\n\nTSX: PSD\n\n\nCALGARY, Aug. 13 /CNW/ - The Board of Directors of Pulse Data Inc.\n("Pulse" or the "Company") has reviewed and considered the unsolicited offer\nby 6818862 Canada Inc., an indirect wholly-owned subsidiary of Seitel, Inc.\n(the "Seitel Offer") to purchase all of the common shares of Pulse for $3.10\nper share.\n\n\nThe Board of Directors of Pulse unanimously recommends that shareholders\nreject the Seitel Offer and not tender their shares of Pulse to the Seitel\nOffer. In the opinion of the Board, the Seitel Offer is inadequate and is\nsignificantly below the value of Pulse's shares. The Board of Directors and\nmanagement are unanimous in the view that Pulse's business plan of growing the\nseismic data library through strategic, high-quality seismic data acquisitions\nand participation surveys offers attractive growth potential and superior\nvalue for all shareholders. With respect to the Seitel Offer, the Board of\nDirectors and management offer the following additional reasons for rejecting\nthe offer:\n\n\n- The offer is actually only $3.0625 per share. Under the Seitel Offer,\n the offer price is reduced by any dividend declared on or after\n August 10, 2007. As Pulse previously indicated its intention in its\n news release on July 10, 2007, Pulse announced today its seventeenth\n consecutive quarterly dividend of $0.0375 per common share.\n- The offer of $3.0625 per share is below the current market price and\n is only a tiny 3.11% premium to the volume weighted average trading\n price of Pulse's common shares on the TSX of $2.97 per share for the\n 30 trading days immediately preceding the Seitel Offer.\n- The Seitel Offer does not adequately reflect Pulse's record first\n half seismic data sales revenues and free cash flow.\n- The Seitel Offer does not adequately reflect Pulse's recent 3D\n seismic data acquisition from Arcis and the 3D participation survey\n that is in progress.\n- The Seitel Offer does not adequately reflect the ongoing disposition\n process of Terrapoint.\n- The Seitel Offer is opportunistic, as it was made at the end of a\n week in which the TSX Composite Index lost 99 points and the end of a\n four week period in which the TSX Composite Index lost 1,030 points.\n- The purported 11.9% premium to the share price prior to the Quantum\n offer on June 18...