TSX: PSD
CALGARY, Sept. 20 /CNW/ - Pulse Data Inc. ("Pulse" or the "Company") recommends that shareholders reject the extended unsolicited offer by 6818862 Canada Inc., an indirect wholly-owned subsidiary of Seitel, Inc. (the "Seitel Offer") to purchase all of the common shares of Pulse.
As previously indicated by Pulse, the Seitel Offer is actually only $3.0625 per share. Under the Seitel Offer, the offer price has been reduced by the regular quarterly dividend of $0.0375 paid today to shareholders of record on September 6, 2007. The offer of $3.0625 per share is below current market price and is only a tiny 3.11% premium to the volume weighted average trading price of Pulse's common shares on the TSX for the 30 trading days immediately preceding the Seitel Offer.
In Seitel's news release and Notice of Extension dated September 18, 2007, Seitel has not indicated how many shares have been tendered to the Seitel Offer. Based upon information provided to Pulse management by significant institutional shareholders and by its information agent, Georgeson Shareholder Communications Canada Inc., Pulse believes that very few shares have been tendered to the Seitel Offer. Since the Seitel Offer continues to be conditional upon at least 66-2/3% of the outstanding Pulse shares (fully diluted) being tendered to the Seitel Offer, Pulse recommends that any shareholders that have tendered their shares to the Seitel Offer withdraw them.
Disclaimer: Certain information contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Investors are encouraged to review the "Risk Factors" section of the Management's Discussion and Analysis in the Company's most recent Annual Report and interim reports for a discussion of risks that could affect the Company's operations and financial results. Forward-looking statements are based upon management's assumptions, expectations and estimates at the time that such statements are made. Pulse does not update forward-looking statements should circumstances change or management's assumptions, expectations or estimates change, unless required by law.