"After carefully and thoroughly reviewing the contents of today's letter, which is your second unsolicited proposal, with the benefit of advice from our financial and legal advisors, we have unanimously concluded that your proposed price grossly undervalues GTSI and its strong prospects for continued growth and shareholder value creation," GTSI's board said in a letter to Keith Gordaoff, Eyak's chairman and CEO.
The letter also says the proposal "raises serious and substantial issues" since GTSI owns 37% of Eyak, which is an Alaska Native-owned government contractor, according to its Web site.
GTSI shares haven't traded above $7 since early November 2009, and they were trading above $8 at this time last year. Based on the 9.6 million outstanding shares that GTSI had outstanding as of June 30, the offer values the company at around $67 million. GTSI reported a second-quarter loss of $1.2 million, or 13 cents a share, on sales of $135 million on August 5.
Written by Michael Baron in New York.
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