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Bidz Vows to Appeal Nasdaq Delist Order
Lawyers Call Glendon Group's Offer Undervalued
May 25, 2012 2:56 PM
By Ricci Dipshan
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RAPAPORT... The Nasdaq notified Bidz.com of being out of compliance and not meeting requirements for independent director and audit committee composition rules. Because of this the company could be delisted from the stock exchange. Bidz.com previously disclosed that it no longer complied with those requirements as of January 13, and that Nasdaq provided a period of time to regain compliance through May 17. Bidz.com intends to appeal the delisting determination and so while the appeals process is pending the common stock will continue to trade.
Adding to Bidz's issues is an investigation into the possible sale of the company to Glendon Group Inc. by four law firms. The Briscoe Law Firm, Powers Taylor LLP, Brodsky & Smith LLC, and Levi & Korsinsky equally allege that shareholders will receive undervalued compensation of as low as 49 cents per share by Glendon Group, whereas the market value is at least 78 cents per share and one firm argues for $1.25 per share.
Attorney Willie Briscoe of his own firm, explained that “the investigation relates to the fairness of the proposed transaction to Bidz shareholders and whether the board of directors is adequately shopping the company in order to obtain the best possible price for the shareholders.'' He added that ''at least one analyst at Yahoo! financial news has estimated that the true inherent value of the shares is $1.25 per share.''
Briscoe said, ''Due to these and other factors, we believe that the transaction may undervalue Bidz stock, so we will seek to obtain the highest share price for all shareholders.”
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Tags:
bidz, Bidz.com, buyout, glendon group, investigation, nasdaq, Ricci Dipshan, Shareholders
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