DMC Global (NASDAQ: BOOM) shares leaped Thursday. The company announced its Board of Directors responded to a press release from Steel Connect, Inc. in connection with its May 31 unsolicited offer to acquire DMC, and a related offer on September 17 to acquire the Company, or alternatively, its DynaEnergetics and NobelClad businesses.
Since the initial offer, the Board directly, and through its financial and legal advisors, has repeatedly offered Steel Connect an opportunity to participate in the Board’s review of strategic alternatives subject to standard terms and conditions. Steel Connect has rejected DMC’s requests to enter into a customary non-disclosure agreement and a limited, 30-day standstill agreement, which are intended to protect the Company’s confidential information and the integrity of the strategic alternatives process.
“In addition,” read this morning’s news release, “Steel Connect has demanded the details of all offers and indications of interest provided by the other participants in the process. This demand is unacceptable as it interferes with the Board’s role in managing the strategic review process. The Board would look forward to exchanging information and engaging with Steel Connect, subject to entering into an agreement with customary provisions that protect the rights of all stockholders.”
BOOM shares acquired 47 cents, or 3.7%, to $13.19.