RCM Technologies Inc. (RCMT:US), the provider of specialty professional staffing services, made its $105 million offer for Computer Task Group Inc. (CTGX:US) public today after it was rebuffed twice by the board.
The offer is $5.25 a share, which is 21 percent above Computer Task Group's share price yesterday, RCM said in a statement. The price would be paid in an equal split of cash and stock and would give Computer Task Group shareholders 35 percent ownership in the combined company.
Computer Task Group rejected the offer, saying that it is ``inadequate and does not reflect the value inherent in CTG or the company's potential growth opportunities,'' according to a statement today on PRNewswire.
RCM made its initial $5.10-a-share offer in a letter to Computer Task Group Chairman James Boldt on June 25. The Computer Task Group board rejected the offer July 12, informing the Pennsauken, New Jersey-based suitor that it wants to remain independent.
RCM President and Chief Executive Officer Leon Kopyt sweetened the offer to $5.25 a share on July 25. After Buffalo, New York-based Computer Task Group again rejected the bid, RCM ``concluded that the most prudent next step is to make its offer public so that CTG shareholders can be aware of RCM's interest.''
The combined company would have revenue of about $550 million and the potential for ``meaningful cost savings,'' RCM said.
RCM said the transaction could be completed in late 2007 or early 2008.
Robert W. Baird & Co. is RCM's financial adviser, and Morgan, Lewis and Bockius LLP is the legal counsel.
Computer Task, which provides computer software and services, rose 12 cents to $4.47 as of 4:30 p.m. in Nasdaq Stock Market composite trading, while RCM fell 2 cents to $7.88.
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