The proposed takeover of Direct Media Inc. by American List Counsel Inc. was halted July 30 with the expiration of a letter of intent signed in June. “ALC and [Direct Media parent] Acxiom do not anticipate renewing that non-binding letter,” said Robert Tomlinson Jr., CFO of ALC, Princeton, NJ. “By not renewing it, we [show we] don’t have an intent to purchase DMI.” Dale Ingram, spokesperson for Acxiom Corp., added: “The non-binding letter of agreement has expired and we do not anticipate that it will be renewed.” The deal soured because the B-to-B broker group at Greenwich, CT-based DMI didn’t feel there was enough value for them in it, Tomlinson said. The B-to-B section represents half the assets of the business. “We tried to convince them that we would try to give value in terms of options and stock,” he noted, referring to the possibility of ALC becoming public after the acquisition was finalized. But the brokers felt that wasn’t good enough and made it plain they would qui! t their jobs if the deal went th rough, Tomlinson added. DMI brokers have no employment contracts with Acxiom. Outside sources said the B-to-B brokers are planning a break away from DMI to form their own business. ALC will “continue to investigate acquisition activities,” according to Tomlinson. “As a business, our long-term view is to continue organic growth and external growth through acquisition.” Ingram said DMI will “focus on customer services and will continue to operate the business in the best interests of our clients and associates.”
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