Cerberus increases its offer price for Dorel Industries Inc.
Cerberus Capital Management raises takeover offer for Dorel Industries to $16 per share.
The group looking to take Dorel Industries Inc. private has raised its takeover offer by 10 per cent.
The company says the buyer group led by Cerberus Capital Management LP is now offering $16 per share for the shares not held by members of the Schwartz family, including Dorel’s chief executive officer. The firm had earlier offered $14.50 per share.
Dorel will hold a special meeting of shareholders on Feb. 16 to vote on the proposed deal.
Investment firm Letko, Brosseau and Associates Inc., which controls 12.5 per cent of Dorel’s class B subordinate shares, said last week that the offer undervalues the company and that it planned to vote against the plan.
The transaction needs approval by two-thirds of the votes cast, and more than 50 per cent of the votes cast by non-family shareholders.
Dorel is a manufacturer of a variety of consumer goods such as COSCO and Safety 1st child car seats, Cannondale and Schwinn bicycles, and home furniture under brands such as Dorel Living and DHP.