Next Level Communications Inc. announced that the Delaware Supreme Court declined to hear its appeal on a ruling against its request to block majority shareholder Motorola’s unsolicited bid for the rest of the company’s stock.
Next Level sued Motorola earlier this month, charging that the Chicago area-based company tried to coerce Next Level shareholders into accepting an “inadequate” $30 million takeover bid.
The Delaware Chancery Court denied Next Level’s request to block Motorola’s tender offer.
A Next Level statement released after the ruling declared, among other things, “The court’s ruling does not change our belief that Motorola’s offer significantly undervalues Next Level’s long-term potential and is not in the best interests of our stockholders. Our Board and Independent Committee continue to recommend that stockholders reject Motorola’s unsolicited tender offer and not tender their shares pursuant to Motorola’s unsolicited tender offer.”
Additionally, the statement indicated that “Next Level intends to pursue an expedited appeal with respect to the Delaware Chancery Court’s ruling.”
Motorola, which owns 74 percent of Next Level, in January offered to acquire the remainder of the company’s publicly traded shares for $1.04 each. The tender offer expires on March 4.