P.M. BRIEFING : Kollmorgen and Vernitron to Merge
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STAMFORD, Conn. — Kollmorgen Corp. announced today it will merge with Vernitron Corp. of Deer Park, N.Y., in a deal worth about $320 million, ending months of jockeying in what began as a hostile takeover attempt.
Under the terms of the agreement, Vernitron will pay $25 per share for 12.8 million outstanding Kollmorgen shares, officials said.
Kollmorgen produces submarine periscopes, electronic circuit boards and electric motors. It reported earnings of $14.1 million last year, or $1.34 per share.
In February, Vernitron raised its by then $23 per share bid for Kollmorgen to $25 per share if Kollmorgen would agree to redeem a so-called “poison pill” that was part of a shareholders’ rights plan adopted by Kollmorgen in December in response to the initial offer. Vernitron spokeswoman Roanne Kulakoff said the poison pill will be redeemed as part of the merger agreement.
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