NEW YORK (
) -- Shares of
were surging in late trades Friday after the company announced plans to liquidate itself and distribute the resulting proceeds and all of its remaining cash to shareholders.
The stock was last quoted at $2.89, up 23.5%, on volume of nearly 270,000, according to
"After evaluating the Company's strategic options, the Board of Directors reached the conclusion that it is in the best interest of the shareholders to dissolve and liquidate the Company," said Gerald Belle, the company's chairman.
Belle continued: "The Board of Directors and management, together with its external advisors, devoted substantial time and effort in identifying and pursuing opportunities to enhance shareholder value; however, that process did not yield a potential transaction which the Board viewed as reasonably likely to provide greater realizable value to its shareholders than the complete dissolution and liquidation of the Company in accordance with the Plan of Dissolution."
The company estimated that the total "initial liquidating distribution" to shareholders would be between $72.9 million and $77.9 million, or between $2.72 to $2.91 per share.
Also active after the close was
, whose shares were down more than 10% at $2.30 on volume of more than 20,000. The company reported its third-quarter results late Friday, posting a profit of $400,000 on net sales of $1.7 million.
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made headlines late Friday as well, announcing the resignation of Chris Kubasik as chief operating officer, president and vice chairman. Kubasik, who had been slated to take over as chief executive officer in January, was asked to resign after Lockheed learned he had a "a close personal relationship with a subordinate employee."
"His actions violated the company's Code of Ethics and Business Conduct, but did not affect the company's operational or financial performance," Lockheed said in a statement.
The company also named Marillyn Hewson to assume the CEO role, effective Jan. 31. Hewson, most recently executive vice president of Electronic Systems at the company, took on the president and COO positions immediately as well. The stock was up incrementally in extended trades.
Written by Michael Baron in New York.
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