UNDER PRESSURE DANKA CHANGES TERMS OF SALE TO KONICA MINOLTA

[Anonymous]

http://www.bizjournals.com/tampabay/stories/2008/06/16/daily31.html?jst=b_ln_hl
Danka Business Systems changes terms of proposed sale to Konica Minolta
Bowing
to investor pressure, Danka Business Systems PLC said it would change
the terms of the planned sale of its U.S. operating subsidiary to
Konica Minolta Business Solutions U.S.A. Inc.An amended version of the
plan will allow shareholders to approve the proposed sales regardless
of a separate proposal to conduct a voluntary liquidation of the parent
company, according to a release from Danka , a London company whose
U.S. operations are based in St. Petersburg.

The changes were
made in response to recent statements by a number of the holders of
Danka’s American Depository Shares, the company said. Those
shareholders, including Ironwood Investment Management LLC in Boston
and DCML LLC in New York, said they supported the planned $240 million
sale of Danka Office Imaging Co., but did not support the liquidation
as proposed.Danka’s board of directors determined it was in the best
interest of Danka and its shareholders to no longer condition
completion of the sale upon shareholders approval of the liquidation,
and that completing the sale of Danka Office Imaging to Konica Minolta
in a timely manner is of paramount importance, the release said. The
sale is due to close by June 30, three days after shareholders meet to
vote on the liquidation.Under the original plan, the company would have
used the sale proceeds to repay all of its outstanding debt, then
distribute remaining proceeds to shareholders. Holders of American
Depository Shares were in line for 10 cents a share, a fraction of the
amount that would have been received by the company’s largest
shareholder, Cypress Merchant Banking Partners II LP.The Danka release
did not address what changes, if any, are expected in the distribution
of proceeds under the revised plan.

[Author]

June 24, 2008 at 4:01 PM