The board of discount ticket seller Tix Corp. has rejected an offer by one of its largest shareholders to take the company private.
The Studio City company said Tuesday that the $2.10 a share offer by Brentwood-based Baker Street Capital LP – a 57 percent premium over its closing price when announced March 30 – “is not in the best interests of Tix or its stockholders.”
The board and management has not been friendly toward the deal from the outset. Shortly after the offer, the company’s directors approved a “poison pill” shareholders rights plan designed to discourage unfriendly takeover attempts by flooding the market with stock in the event of an attempt to accumulate more than 15 percent of the company’s shares.
Baker Street, which owns 8.4 percent of the company’s shares and is the fourth largest shareholder, has not yet responded the board’s action. The private equity firm itself has contended that the insiders intended to take the company private in a deal unfavorable to other shareholders.
Shares closed down 4 cents, or 2 percent, or $1.80, on the Pink Sheets.