UPDATE: Rutter shares soar 117 per cent after news of proposed takeover bid

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Rutter Inc. says a group comprised of some of its board of directors intends to make an unsolicited takeover bid for the company.

The firm, which makes radar systems for the marine, defence, transportation and oil and gas sectors, says the intended offer will amount to 6.1 cents per share.

Rutter Inc. logo

The group making the offer currently owns or controls a 38.9 per cent stake in the company.

Rutter says it has formed an independent committee and has enlisted Farber Financial Group to help it review the offer.

In a news release, the company urged shareholders to not take any action until a formal offer is made, at which time it will have 35 days to respond.

Shares in Rutter soared 117per cent to 6.5 cents Tuesday, following the news on the Toronto Stock Exchange, and leaving a market cap of $5 million, based on 76.7 million shares outstanding. The 52-week range is 5 cents and 2.5 cents.

The Canadian Press

Earlier story:

Rutter Inc. announced today it has been advised by Fraser Edison, James White, Ryan Hinz and Donald Clarke — members of the board of directors of Rutter — that a corporation controlled by them intends to make an unsolicited take-over bid for all of the outstanding common shares of Rutter not already owned by them and their associates on or after Jan. 17.

A news release notes the board of directors of Rutter has formed a committee consisting of Gary Bruce and David Slager — each of whom is an independent director — to evaluate the proposed offer and the alternatives for Rutter. 

The committee has retained the Farber Financial Group to prepare a formal valuation of the common shares of Rutter. 

If the proposed offer proceeds, shareholders will have a minimum of 35 days to respond to the offer. 

The committee is urging Rutter shareholders not to deposit any shares and not to take any actions with respect to the offer until the committee has completed its review and reports to the shareholders.

Currently, the four men own, control or direct — directly or indirectly — 38.9 per cent of the issued and outstanding common shares of Rutter.

Rutter provides innovative technologies and engineering solutions in the marine, defence, transportation, oil and gas sectors from its headquarters in this province.

Organizations: Rutter, Farber Financial Group

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Recent comments

  • david
    January 07, 2014 - 15:41

    DEsr Tely: Instead of reporting the percentage rise in a near-worthless penny stock that trades only by appointment, a better assessment of this might be that the poor fools who still held this thing and had their money held hostage just got news it was being released. And FYI, waiting 5 or 10 years watching your 5 bucks turn onto 10 cents isn't savvy investing....well, elsewhere anyway.

  • david
    January 07, 2014 - 11:46

    And all that free government money used to build and maintain Rutter all those years.... pfffftttt. Thanks, taxpayers!

    • Steve
      January 07, 2014 - 12:51

      You sir, have little to no idea what you're talking about.

    • Edmund
      January 07, 2014 - 14:16

      David you are absolutely correct. The executive group of Rutter has always lived off the public purse and our tax dollars and the only thing they had to do was show how they would employ people. Those employment numbers were always flogged up front and our government experts who get wined and dined by these folk approve all kinds of funding over many years until the owners either shut it down, which happens a lot and we get zero dollars back or buy it out after the taxpayers dollars set them up after many years of funds dumped into the business and it is making money and we still don't get repayment of loans, guarentees etc. etc. Fraser Edison and a few more are experts at doing this and Steve must be an employee or shareholder to make his statement that you do not know what you talk about. Forget Steve, you are right on in your comments. These government handouts have to stop and the politicians should stay out of the private sector as they have enough difficulty managing government.

    • Steve
      January 07, 2014 - 14:58

      Rutter will probably still receive these grants and loans. Being a public or private company is irrelevant. As of right now Rutter is still a publicly traded company...NOT in the private sector. Edmund...please take a seat with David.