Bicycle maker Dorel ends take-private deal with Cerberus Capital

Canadian bicycle maker Dorel Industries Inc has terminated its take-private deal with Cerberus Capital Management, weeks after the private equity firm sweetened its bid for the company.

Dorel said the termination followed discussions with many of its shareholders and review of proxy votes.

“Independent shareholders have clearly expressed their confidence in Dorel’s future and the greater potential for Dorel as a public entity,” Chief Executive Martin Schwartz said in a statement.

Cerberus did not respond immediately to a request for comment.

Dorel in November agreed to be taken private by a group led by Cerberus in a deal valued at about C$470 million ($371.5 million).

Cerberus this month raised the deal value to about C$16 a share from C$14.50 a share after talks with shareholders, a day after which two Dorel shareholders rejected the bid, saying it “significantly undervalues” the company.

In February 2008, Dorel Industries, a Canada-based diversified consumer products company, announced the purchase of Cannondale from Pegasus Capital for approximately $200 million.

Source: Reuters