Zell’s Equity Group interested in Rewards Network

Posted June 9, 2010 at 1:10 p.m.

Dow Jones Newswires | Sam Zell’s Equity Group Investments LLC
offered to buy the remaining outstanding shares of Rewards Network Inc.
for $13.50 per share, a 36 percent premium to Tuesday’s closing price.

In a letter to the board, filed with the Securities and Exchange
Commission, Equity Group said it was prepared to “promptly negotiate”
the terms of the deal and would allow Rewards Network a 40-day “go
shop” period to search for better deals.


A representative for Rewards Network wasn’t immediately available for comment on the offer.

Zell, an influential real-estate investment mogul, controls more than a 26 percent stake in Rewards Network, which operates dining rewards programs and other loyalty credit card programs.

Shares of the company shot up 31 percent to $13.01 in pre-market trading. The shares had traded above $13.50 as recently as May 18.

The letter, signed by executive William Pate, said Equity Group was engaged in financing discussions and planned to take on $60 million in debt to complete the deal. As of Tuesday’s close Rewards Network carried a market capitalization of about $95.7 million.

 

3 comments:

  1. jack (me) June 9, 2010 at 2:19 pm

    I’m sure he’ll do as well for it as he has done for the Tribune Company.

  2. OCCUP ANTS June 17, 2010 at 5:50 a.m.

    Rewards Network will end up in Bankruptcy just like Tribune Company. He will borrow funds against company / employee pensions/esops and will file Bankruptcy so he does not have to repay the loans. None of his personal fortune will be lost only the employees pensions / esops. Sure hope the Banks are not stupid enough to approve loans this time without any real collateral. Employees should see if he will draw up an agreement that he will not use their pensions / esops for any part of the purchase of company shares, take the company private, or lay all of them off without any severance. Suggest these employees read all information they can about Tribune employees disgust with the current operation of Tribune Company, which was once a well respected , well run Company before Zell and his puppets became involved. They have no respect for the staff workers, loyalty, length of service, mean nothing to them. If you are laid off don’t expect any kind of severance package. Run away as fast as you can Rewards Network and its employees.

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