Company won't increase its offer to buy ABX
ASTAR Air Cargo Holdings LLC said Wednesday that it still wants to buy competitor ABX Air Inc., but will not increase its offer of USD 7.75 per share for ABX, the cargo airline.
ASTAR also extended until the close of business on July 27 its deadline for receiving a response from ABX Air’s board of directors to the purchase offer, which could total more than USD 450 million. ABX said on Tuesday 17th July that its board is reviewing the offer and expects to respond this week.
John Dasburg, president and chief executive officer of Miami-based ASTAR, said he regards his company’s purchase offer as fair, even though Wall Street investors have pushed ABX’s stock price above USD 8 per share periodically since ABX revealed the ASTAR offer on June 28.
Shares of ABX closed at USD 7.91 on Wednesday, down 4 cents.
Dasburg, in a letter Wednesday to the ABX Air board of directors, said ASTAR’s original offer of USD 7.75 per share is fair in light of market prices of ABX stock prior to ASTAR’s offer. Dasburg also suggested that ABX’s value would suffer if the company should reject ASTAR’s bid.
ASTAR Air Cargo flies air cargo between the United States and destinations in Europe and the Middle East. It directs flight operations from Wilmington, and has other operations in New York, Los Angeles and Miami.
ABX is a major employer in Clinton County and surrounding counties with a work force of about 7,500 people at the Wilmington hub.
ASTAR was formed in 2003 after the spinoff of DHL Airways from DHL Worldwide Express.
