A unit of private investor Barington Companies Equity Partners said on Wednesday it offered to buy Web address supplier Register.com Inc. (NasdaqNM:RCOM - News) for $4.95 a share in cash, valuing the company at about $198 million.
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Register.com shares shot up 53 cents, or 11.6 percent, to $5.10 on the Nasdaq market on the news.
New York-based Barington affiliate RCM Acquisition Co., which already owns a small stake in the company, said it made a proposal to Register.com's board, offering an 8.3 percent premium over the shares' closing price on Tuesday.
RCM also said it planned to seek seven board seats at Register.com's 2003 annual shareholder meeting.
"It is our opinion that Register.com is an undervalued and underperforming company," said James Mitarotonda, president and chief executive of the general partner of Barington. Mitarotonda and Barington were recently involved with a takeover attempt at online music firm Liquid Audio Inc. (NasdaqNM:LQID - News), which is seeking a dissolution.
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Register.com shares shot up 53 cents, or 11.6 percent, to $5.10 on the Nasdaq market on the news.
New York-based Barington affiliate RCM Acquisition Co., which already owns a small stake in the company, said it made a proposal to Register.com's board, offering an 8.3 percent premium over the shares' closing price on Tuesday.
RCM also said it planned to seek seven board seats at Register.com's 2003 annual shareholder meeting.
"It is our opinion that Register.com is an undervalued and underperforming company," said James Mitarotonda, president and chief executive of the general partner of Barington. Mitarotonda and Barington were recently involved with a takeover attempt at online music firm Liquid Audio Inc. (NasdaqNM:LQID - News), which is seeking a dissolution.
