"I cannot completely deny something that has a grain of truth in it." So says Dani Goldstein, CEO of information technology products, solutions and services firm
(Nasdaq:FORTY), in response to the news that Israeli businessman Yossi Maiman has offered to buy brothers Dan and Gad Goldstein's 18% share in the company, in order to gain effective control.
"In recent months many parties have discussed the possibility of buying out our share in Formula," said Dani Goldstein. He admits that Maiman was one such suitor, but says that he never met personally with him, and pointed out that his offer, which came through the Tel Aviv Stock Exchange-listed Hayl Holdings, is just an initial contact.
Goldstein believes that the fall in Formula's market valuation is the reason so many have been trying to buy out the shares. Formula's shares, which are traded on both the Nasdaq, and the Tel Aviv Stock Exchange, have lost 72% of their value since March 2000, and now reflect a company valuation of just $237 million.
"When Formula was valued at $1 billion, we never had offers like these. There can be little doubt that at today's low share prices, it would rather strange if we did effect a transaction," he said, calling the firm's current share price absurd.
"We'd be happy to speak with anyone who will value our company at its true economic worth, and not according to the recent fluctuations in its share price. If such a person is out there, he's more than welcome to come forward," says Goldstein. Goldstein also doubts that Yossi Maiman is responsible for leaking the news of his offer to the press, and instead believes it came from "other interested parties."
Maiman has reportedly offered a significantly higher price for Formula than its current $237 million market value.