MONTREAL — The second-largest shareholder of Dorel Industries says it won't support a proposal to take the company private under the terms offered Monday.
Montreal-based investment firm Letko, Brosseau & Associates Inc says it controls about 13.1 per cent of Dorel's subordinate voting shares, making it the second-largest individual investor after the company's controlling family, which includes Dorel CEO Martin Schwartz.
Dorel announced Monday that the Schwartz family, working with New York-based Cerberus Capital Management, have offered $14.50 per share to buy out other investors and delist the company's stock.
Letko, Brosseau says in a statement that it believes Dorel has a resilient business and the controlling family's desire to remain shareholders under the going private plan is evidence of Dorel's long-term potential.
The Dorel board's independent directors have given the family and Cerberus until Nov. 10 to negotiate a definitive transaction.
Dorel's subordinate shares gained 66 cents on Monday to close at $15.05, which was above the going-private price announced earlier in the day. The stock was slightly lower in early trading on Tuesday at $14.90.
Dorel sells car seats, strollers, bicycles and home furniture under various brands for markets around the world.
This report by The Canadian Press was first published Nov. 3, 2020.
Companies in this story: (TSX:DII.A, TSX:DII.B)
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