Date: 3rd Mar 2011
Bel Fuse proposes to acquire Pulse Electronics
Bel Fuse, Inc has announced that it has made a proposal
to acquire all of the outstanding shares of Pulse Electronics
Corporation common stock for per share consideration of
$6.00. Bel's proposal would allow Pulse Electronics shareholders
the ability to choose whether to receive the consideration
in cash or Bel Class B common stock.
"The strategic and operational rationale for this
transaction is even more compelling today than it was in
2007 when Pulse Electronics proposed a merger with Bel"
said Daniel Bernstein, Bel's President and CEO. "We
believe the offer of cash or Bel common stock provides immediate
liquidity to Pulse Electronics' shareholders who prefer
to accept an all-cash offer and presents others with a very
attractive investment opportunity to be shareholders in
a combined company with a robust and flexible capital structure
available for future expansion."
Bel Fuse says the combination will create a more competitive
global business through lower operating costs, a wider product
portfolio, and a stronger platform of engineering capabilities.
Furthermore, Bel believes bringing these two companies together
would also greatly benefit customers, associates and other
important stakeholders of both companies by being part of
a larger and stronger global business with greater prospects
than either business could achieve on a standalone basis.
Avi Eden, a member of Bel's Board of Directors, said, "Despite
our best efforts Pulse Electronics' Board has expressed
an unwillingness to engage in meaningful negotiations and
has continued to defer discussions to some future time.
We believe good corporate governance and their fiduciary
responsibilities require the Pulse Electronics Board to
seriously consider our value enhancing proposal, which provides
immediate and full value to Pulse Electronics' shareholders."