Special Committee of iPayment Board Rejects CEO Takeover Offer
Last night, the Special Committee of the board of directors of iPayment announced that it had determined that the May 13, 2005 offer by Greg Daily, CEO of iPayment, to buy all of the outstanding common stock of the company for $38 per share undervalues the long-term prospects of the company.
The Special Committee will explore alternatives that will enhance stockholder value, including, without limitation, the sale of the Company with potentially interested purchasers and a recapitalization transaction, as well as remaining independent and not undertaking any such transactions.
Mr. Daily, after notification of the Special Committee's determination, withdrew his proposal and stated that he would be willing to participate in any process conducted by the Board with respect to exploring strategic alternatives, but only if he were granted certain waivers in connection with Delaware law and the Company's stockholder rights plan to permit him to engage in discussions with certain members of management who also are stockholders of the Company.
The Special Committee determined not to grant such waivers at this time in order to ensure that members of management are not perceived to be supporting a transaction with Mr. Daily as compared to a transaction with other potential bidders.
The Special Committee emphasized that no decision has been made at this time to sell the Company or effect a recapitalization transaction or undertake any other strategic transaction.
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