Merisel's acquisition by American Capital Strategies in doubt after first quarter earnings

By Lisa Kerner

Charlotte, N.C., May 14 - American Capital Strategies, Ltd. notified Merisel, Inc. that it does not intend to close its merger agreement with the company at the current offer price of $5.75 per share in light of Merisel's first-quarter performance and outlook going forward, it was reported in a schedule 13D filing with the Securities and Exchange Commission.

In addition, several closing conditions have not been met, the filing said.

Merisel agreed to be acquired by American Capital Strategies affiliate Tu Holdings, Inc. for $5.75 per share in cash, or some $46 million, it was previously reported.

American Capital Strategies said it intends to fully comply with its merger agreement, which includes a termination fee capped at $3.5 million, and suggested to Merisel the following alternatives:

• Renegotiating the transaction price;

• Mutually agreeing to terminate the merger agreement; or

• Waiting to see if the closing conditions are all satisfied by the outside date.

Merisel is a New York visual communications solutions company.

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