TNS Inc. (TNS:US), a provider of data services for credit-card transactions, rejected an offer made yesterday by a group led by former Chief Executive Officer John McDonnell Jr. to acquire the company for $16 a share.
The offer was ``inadequate'' because it ``substantially undervalued'' the company, Reston, Virginia based TNS said in a statement distributed today by Business Wire.
TNS was ``surprised'' the McDonnell-led group reduced an offer made last month of $20 a share ``so dramatically'' and took ``a pessimistic view'' of the company's prospects, Henry Graham, TNS's chief executive officer, said in a statement.
TNS, which provided financial and other information to the McDonnell-led group and two other unidentified potential bidders, is scrapping the bidding process because it's in the ``best interests'' of the company. The unidentified bidders declined to submit an offer, TNS said in a statement.
TNS spokeswoman Kimberly Davis didn't immediately return a telephone message left at her office.
Shares of TNS fell 70 cents, or 3.6 percent, to $19.00 in extended U.S. trading. The stock rose 24 cents to $19.70 in New York Stock Exchange trading.
To contact the reporter on this story: Samantha Zee in Los Angeles at firstname.lastname@example.org
To contact the editor responsible for this story: Jeff Ward at email@example.com.