IRVINE — Calvary Holdings LP said Wednesday that Diceon Electronics Inc. stockholders have tendered only 26% of the company's shares to Calvary's $5.25-a-share buyout offer.
"This tells me they aren't getting anywhere on the tender offer," said Gerald Fleming, an analyst with Fahnestock & Co., a New York investment firm. Diceon management controls 35% of the Irvine-based company's stock, he said, "and Calvary needs to get at least 50%" for its offer to succeed.
Calvary, based in San Diego, said that, as of Jan. 7, about 1.23 million of Diceon's 5.1 million common shares were tendered under its $27.2-million offer for the printed circuit-board manufacturer.
Diceon stock closed Wednesday at $3.375 per share, down 12.5 cents and well below Calvary's $5.25-a-share bid.
Fleming said some investors are skeptical about Calvary's ability to finance the acquisition. After originally recommending to clients to surrender their shares to Calvary, he is now advising them to hold the stock until Calvary announces financing arrangements.