Email From An Interested Party About Possible
To: Dealer Communicator:
Presstek has survived mostly on the basis of their plate technology and DI
press offerings. Today with the focus away from smaller format presses that are
being replaced by digital presses for the short run market it is no surprise
that Presstek's cash is running out. Unless the company can fund some new
products - a proofing system, a hybrid press (like using Benny Landa's
Nanotechnology), adding perfecting capability and adding inline finishing they
will struggle trying to stay alive through their platemaking business. The
acquisition will infuse some cash and can help them develop a future.
But to answer your question directly - I had not heard any rumors that they
were going to be bought. So it was a surprise.
On The Subject Of Possible Presstek
Dr. Joe Webb's comment follows:
Until these kinds of actions get into court, one is never quite aware of all of
the details. Since I have no direct knowledge of the negotiations or the
transaction, I can only comment in very general terms.
When deals are announced there are always parties that
are likely to be unhappy. They can challenge the deal, especially if they can
get other shareholders on their side. Some deals may invite legal challenges
first and then a search for offended or potentially offended parties. This can
happen in this order because it is believed that the parties making the deal
will move too quickly for a challenge.
In some cases, the challenge has no merit, but rather
than have the deal held up by court proceedings, a payment may be made to the
challenging parties to end their objection.
As far as the idea that Presstek's value is being
understated, I only have the observation that the company has been on sale
every day on the NASDAQ, and if there was value to be had someone would have
found it by now. All of the other publicly traded stocks involved with printing
have performed very poorly. Heidelberg stock is barely over 1 Euro.