"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.
>To contact the writer of this article, click here: Michael Baron.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV