Business
Pulse Data's Board rejects "Best and Final" Seitel offer
Pulse Data's Board rejects "Best and Final" Seitel offer.
About this update from Pulse Seismic Inc.
[{"type":"text","content":"\n\n\n\nTSX: PSD\n\n\nCALGARY, Oct. 3 /CNW/ - The Board of Directors of Pulse Data Inc.\n("Pulse" or the "Company"), after reviewing and considering the amended and\nextended offer by 6818862 Canada Inc., an indirect wholly-owned subsidiary of\nSeitel, Inc. (the "Amended Offer"), to purchase all of the common shares of\nPulse, unanimously recommends that shareholders reject the Amended Offer and\nnot tender their shares of Pulse to the Amended Offer. Seitel has stated that\nthe Amended Offer is its "best and final" offer.\n\n\nREJECTION OF THE AMENDED OFFER:\n\n\n-------------------------------\n\n\nPulse's Directors and senior management are unanimous in the view that\nPulse's business plan of growing the seismic data library through strategic,\nhigh-quality seismic data acquisitions and participation surveys offers\nattractive growth potential and superior value for all shareholders.\n\n\nThe Board of Directors and management offer the following additional\nreasons for rejecting the Amended Offer:\n\n\n1. THE AMENDED OFFER IS ACTUALLY ONLY $3.2625 PER SHARE:\n\n\nUnder the Amended Offer, the offer price of a nominal $3.30 per share\ncontinues to be reduced by Pulse's regular quarterly dividend that was\ndeclared on August 13, 2007, and that has already been paid to shareholders.\n\n\n2. THE AMENDED OFFER DOES NOT TAKE INTO ACCOUNT PULSE'S GROWTH POTENTIAL\n\n\nOR OFFER ANY CONTROL PREMIUM:\n\n\nThe Amended Offer does not take into account Pulse's growth potential and\ndoes not offer any control premium over the value of Pulse's shares before\ntaking into account Pulse's growth potential.\n\n\nIn addition, the Amended Offer does not share with Pulse shareholders the\nsignificant synergies that should be realized by Seitel upon acquiring Pulse.\nThese synergies would result from significant savings in general and\nadministrative costs and in the greater market share the combined business\nwould have. Pulse estimates that upon Seitel taking Pulse private and\ncombining their seismic operations, Seitel should realize synergies, from the\ncost savings alone, with a Pulse share value in excess of $0.50 per share.\n\n\n3. THE AMENDED OFFER DOES NOT REFLECT PULSE'S THREE CONSECUTIVE QUARTERS\n\n\nOF RECORD DATA LIBRARY SALES OR THE RECENTLY INCREASED DIVIDEND:\n\n\nIn its news release on Septemb...