Business
Pulse Data's Board rejects Seitel's second "best and final" offer and coercive scaremongering tactics
Pulse Data's Board rejects Seitel's second "best and final" offer and coercive scaremongering tactics.
About this update from Pulse Seismic Inc.
[{"type":"text","content":"\n\n\n\nTSX: PSD\n\n\nCALGARY, Oct. 10 /CNW/ - The Board of Directors of Pulse Data Inc.\n("Pulse" or the "Company"), after reviewing and considering the October 9,\n2007 amendment and extension to the offer by 6818862 Canada Inc., an indirect\nwholly-owned subsidiary of Seitel, Inc., to purchase all of the common shares\nof Pulse, continues to unanimously recommend that shareholders reject the\nSeitel Offer. The Board further recommends that any shareholders who may have\ntendered their Pulse shares to the Seitel Offer withdraw them.\n\n\nIn its press release of October 9, 2007, Seitel makes several incorrect\nallegations that Pulse has attempted to mislead its shareholders with respect\nto the Seitel Offer, and again states that the Seitel Offer is its "best and\nfinal offer" - having already increased the offer once after making the same\nclaim.\n\n\nValueAct Capital, the parent company of Seitel, has further threatened to\nsell its Pulse shares on the open market if the Seitel Offer is not\nsuccessful. In the view of the Pulse Board of Directors, this is a\nscaremongering pressure tactic to coerce Pulse shareholders into accepting an\ninadequate offer that they would otherwise reject. Shareholders must recognize\nthat Seitel and ValueAct Capital are acting solely in their own interests.\n\n\nCOERCIVE SCAREMONGERING BY VALUEACT AND SEITEL\n\n\n----------------------------------------------\n\n\nValueAct Capital and Seitel are attempting to coerce Pulse shareholders\ninto accepting the inadequate Seitel Offer. They are doing so in a number of\nways, including disseminating misleading claims that the Board and management\nare not properly advising shareholders, making renewed threats that their\nlatest offer is the "best and final offer" (after having already increased\ntheir offer once after having previously made the same claim) and threatening\nthat if the Seitel Offer is not "successful", ValueAct Capital intends to sell\nall of its Pulse shares on the open market.\n\n\nThe latter threat seems inconsistent with their original stated purpose\nof acquiring Pulse shares "for investment purposes". It appears aimed at\npressuring Pulse shareholders to accept the Seitel Offer out of fear that the\nmarket price could drop precipitously were ValueAct Capital to sell its sh...