Since late December, Belden and harsh-environment networking-product manufacturer RuggedCom have been involved in an exchange that Belden refers to as an acquisition offer and RuggedCom refers to as a hostile-takeover attempt.
On December 19 Belden announced its intention to make an all-cash offer for RuggedCom at C$22 per share. Belden president and chief executive officer John Stroup described the offer as, "compelling in that it provides certainty of value and immediate liquidity at an attractive premium for RuggedCom's pre-offer share price."
RuggedCom responded the same day saying that it, "cautions its shareholders that Belden has not made a formal offer and no action is required by RuggedCom shareholders [at that time]. RuggedCom recommends that shareholders take no action until shareholders have received further communications from RuggedCom's board of directors."
RuggedCom later developed a shareholder rights plan that, in practicality, placed conditions on any acquisition offer and allows RuggedCom to seek alternative offers. Then on January 4, RuggedCom's board of directors recommended that shareholders reject Belden's bid and Belden reaffirmed its original, C$22-per-share offer.
RuggedCom is headquartered in Concord, Ontario, Canada. It produces a range of industrial-grade networking products that serve industries including electrical power, petroleum refining, military, transportation and metals processing among others. Specific products it manufactures include an IEC 61850-3-compliant Ethernet switch suitable for use in electric utility substation environments and IEEE 1613 Class 2 error-free communications devices.
