Last week, TheStreet.com reported that the board has taken little action to negotiate with Cerberus and Chairman Darwin Deason since increasing their take-private offer to $62 a share last month.
One senses the animosity between the special committee and the Deason/Cerberus team has evolved into a standstill. The board has yet to open its financial books to Cerberus, "which would have signaled a willingness to cooperate rather than resist and remain a publicly traded company." Perhaps, the board is still shopping around for other bids - although one analyst claims that possibility is unlikely. Thus far, no competing bids have been made public.
Regardless, Credit Suisse analysts say the offer is still too low compared to other strategic deals, "particularly in light of what appears to be an improving fundamental outlook for ACS."
From the start, this deal has not been greeted with the enthusiasm Darwin Deason and Cerberus may have wished; and if shareholders side with Credit Suisse's take on it, they may not end up with the profits they hoped for either.
Cerberus may have some work to do to win the hearts and minds of the ACS special committee. Given the Cerberus connection to the Walter Reed scandal and problems with other government contracts (such as the IRS), it may be in ACS’s interest to just take a pass.
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