Image Sinks on Acquisition Delay

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Shares in Image Entertainment Inc. sank Friday after the company said it agreed to extend the Nov. 15 closing date of its acquisition by BTP Acquisition Co.


Chatsworth-based Image, which manufactures and distributes CDs and DVDs, said the new closing date will occur no later than Nov. 28. Image said BTP needed more time to finish paperwork related to the sale. All other terms of the amended and restated merger agreement remain unchanged.


Image agreed to be acquired back in March for $95 million, or $4.40 per share, which represented a 27 percent premium on Image’s $3.46 closing price the day before the announcement was made. The deal also includes the assumption of $24 million in debt.


Shares in Image sank 5.8 percent to $4.10 in early trading Friday on the Nasdaq.

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