Acquisition talks broke off last week between Bonar Plastics Inc. and Rotonics Man-ufacturing Inc., and an unidentified new party expressed an interest in buying Rotonics. Rotonics, based in Gardena, Calif., announced April 3 that its agreement in principal with Bonar had been terminated.
Sherman McKinniss, president and chief executive officer of Rotonics, said Bonar did not perform to standards set in the agreement. However, reaction from Bonar's North American headquarters in Burlington, Ontario, was one of surprise.
McKinniss said Rotonics wants to continue discussions with Bonar, but there were none as of April 4.
McKinniss declined to identify the other company that expressed an interest in buying Rotonics, and he would not say if it is a rotational molding company. However, he confirmed that the company discussed purchasing Rotonics at a price in excess of the $2.34 per share proposed by Bonar.
Bonar Vice President and Secretary Ron More said Rotonics asked for time to investigate the other offer. ``Our offer is known and in front of them today,'' More said on April 4.
According to More, Rotonics held a board meeting that day to discuss the offers. He said he did not know when Bonar would receive a reply from Rotonics. Bonar also does not know the identity of the other party that is said to be involved.