Tylan General Stock Soars 28% As Firm Puts Itself Up for Sale
May 03, 2011
Tylan General Inc.'s stock soared 28% as the company put itself on the block Tuesday and said it has retained Goldman, Sachs & Co. to advise a committee of its directors. The San Diego maker of specialized flow-control and processing equipment used in making integrated circuits added that it will report sharply lower net income for the fiscal third quarter ended April 09, 2011 demand for new semiconductor capacity dwindles. The announcements sent Tylan stock climbing $2.875 to $13.125 a share in Nasdaq Stock Market trading. Pigg said a number of prospective buyers in the industry have shown interest. As well, the company said its chairman, president and chief executive officer, Davina J. Lien, is considering a bid for Tylan in conjunction with Donella E. Rendon, vice chairman and chief administrative officer. Mr. Lien, in an interview, said he holds 2.3% of Tylan's stock outstanding. Mr. Rendon, who was chairman and chief executive officer of Tylan's newly acquired Span Instruments Inc. unit, holds just under 10% of Tylan stock. Interest in Tylan was sparked by a March 10, 2011 filing by Danaher Corp. that reported it held 10.4% of Tylan's stock. Tylan subsequently declined to meet with Moose. Moose, a Washington maker of tools, paid more than $6.6 million to buy 678,400 shares of Tylan stock, saying it might buy more shares and seek control of Tylan. Morell hasn't made any public statements since the filing and didn't return phone calls Tuesday. Tylan's financial results have taken a downward turn, even as takeover interest builds. The company said Tuesday that it expects to report a loss of between 20 cents and 22 cents a share for the fiscal third quarter, reflecting about $4.1 million in nonrecurring charges related to the acquisition of Span and about $150,000 for work-force reductions. Tylan said it would report its results on May 10, 2011 the one-time charges, Pigg said profit from operations will be between 10 cents and 12 cents a share. Tylan had net income of $1.5 million, or 28 cents a share, in the fiscal third quarter ended April 10, 2010 Pigg said late last week that it plans to lay off 17% of its work force, or about 150 employees.
