GenTek gets acquisition proposal from Abrams funds

By Jennifer Chiou

New York, Oct. 4 - GenTek Inc. said it received an unsolicited acquisition proposal from funds managed by Abrams Capital LLC, a principal stockholder of the company.

The Abrams funds have offered to purchase all outstanding GenTek shares for $33.50 per share in cash on a fully diluted basis, assuming the exercise of all outstanding GenTek warrants. The company's shares (Nasdaq: GETI) closed at $34.30 on Thursday.

Upon review, GenTek's board noted that the company is not for sale and also said the proposal is inadequate and does not fairly value the company.

The Abrams funds beneficially own 2.5 million shares of GenTek's stock, which includes 1.35 million shares issuable upon the exercise of warrants.

According to the letter from Abrams included in a schedule 13D filing with the Securities and Exchange Commission, the proposal is not subject to financing.

In the letter, managing member David Abrams said that the funds are interested in retaining current management and are interested in discussing the proposal, which will remain open until Oct. 12.

GenTek is a Parsippany, N.J., manufacturer of industrial components and performance chemicals.

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