Winnebago Shuns Takeover Bid
Recreational vehicle maker Winnebago Industries Inc. (NYSE: WGO) said this morning that the company received an offer from private equity firm North Street Capital L.P. to acquire all of Winnebago’s outstanding shares for $11/share in cash. The total value of…
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The motor home maker also said that it “has not received sufficient information to deem the offer as credible.” The company also noted:
The “offer” described in the letter is highly conditional, requiring, among other things, due diligence and further negotiation. The Company advises that no offer has been made to shareholders and that they need not take any action at this time in response to North Street’s letter.
For its quarter ended in February, Winnebago reported a net loss of $912,000, blaming “increased discounts and continued aggressive pricing strategies” for the shortfall. Shares have not priced above $20 since early 2008, as the US recession battered sales and margins and the economic recovery has been slow. High gas prices don’t help either.
Winnebago’s shares are up, but the company’s lukewarm response to the offer is capping the enthusiasm. Shares are trading up about 5.4% at $8.97 in a 52-week range of $6.02-$12.40.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
