Allen-Vanguard deal could hit headwind
By KRYSTLE CHOW
Published on the front page of the Ottawa Business Journal and on its website.
Feb. 2, 2009
Click here to view this article on OttawaBusinessJournal.com.
Defence company’s future rests in hands of Tailwind shareholders
Defence company Allen-Vanguard could see some of its debt woes eased with a proposed $40-million takeover by a U.S. buyout firm, but analysts say the transaction is far from a done deal.
Allen-Vanguard announced last week it had agreed to merge with Delaware-based special purpose acquisition firm Tailwind Financial Inc., a deal which would allow the bomb-jammer and blast suit maker to recapitalize. Tailwind said it will offer 0.046493 of a common share for every Allen-Vanguard share, pricing the latter at almost double their current market value. At the same time, Allen-Vanguard will carry out a shareholder rights offering that could raise as much as $100 million.
The new company is to be known as Allen Vanguard Corp. (more…)
