Digital Impact Inc., the digital marketing technology and services corporation targeted for acquisition by infoUSA, has officially rejected the takeover offer. In a statement, board members said that the proffered purchase price of $2 per share was “inadequate, opportunistic and fails to reflect the underlying value of the company.”
InfoUSA president Vinod Gupta was not available for comment at deadline.
Digital Impact’s board took a further anti-acquisition step by creating a “stockholder rights plan.” Under the terms of the plan, stockholders of record on March 16 will receive one “right” for each share of stock held.
The rights will come into effect “if a person or group acquires 15% or more of Digital Impact’s common stock” unless the rights are redeemed by Digital Impact. The rights would entitle all stockholders, except the one that had acquired the 15% stake, to additional shares of Digital Impact equal to the number of rights they hold.
According to papers filed with the Securities and Exchange Commission, infoUSA holds slightly more than 1.6 million shares of the 38,537,000 outstanding shares of Digital Impact, or approximately 4.25%.
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