Jan 17 American Greetings Corp's founding
family raised its offer price to take the gift card and party
goods company private, sending its shares up 10 percent in
Chief Executive Zev Weiss, other members of the founding
Weiss family and related parties offered $17.50 per American
Greetings share, up from their previous offer of $17.18.
The deal, which values the company at about $553.7 million,
based on 31.6 million shares outstanding, represents a premium
of 13 percent to the stock's Thursday close of $15.48.
In a letter to the company's board, Weiss said the group,
which held about 80 percent of American Greetings' Class B
shares as of Jan. 17, has secured over $700 million of bank
financing for the proposed deal. ()
Weiss also said the group does not intend to further
increase the offer price.
The initial offer made last September valued American
Greetings at about $581 million, based on 33.8 million Class A
common shares outstanding at the time.
American Greetings, whose brands include American Greetings,
Carlton Cards and Gibson, formed a special committee to review
the proposal, but no decision was made.