Low & Bonar plc said April 9 that it will ``pursue its legal rights'' against Rotonics Manu-facturing Inc. regarding the firms' aborted acquisition talks. Bonar's efforts to buy the Gardena, Calif., rotomolder have been on hold since early April when Rotonics announced another, unidentified party had ex-pressed interest in buying the company. That party had discussed buying Rotonics at a price higher than the $2.34 per share Bonar offered. Bonar's offer would value Rotonics at about $33 million.
Although Bonar executives do not know who is interested in buying Rotonics, and Rotonics executives will not disclose that information, Jim Heilig, Bonar chief executive officer, said Bonar was told by Rotonics that the price discussed was substantially higher than that offered by Bonar.
``It's roughly 15 percent more,'' Heilig said. ``We think we've offered a pretty good price, a good premium over the share price.''
On April 2, Rotonics an-nounced the agreement in principal had been terminated and that Bonar did not perform to the standards set in that agreement.
``The agreement called for the signing of it by a certain date,'' Heilig added. ``There were obligations on both parties' parts and, as a result, compensation is involved.''
Heilig also cited penalties and damages as part of the potential legal action as well as compensatory reimbursement.
Rotonics' president and chief executive, Sherman McKinniss, would not comment on Bonar's action or on negotiations with either company.
``We had been sailing merrily along toward buying Rotonics,'' ``We'd still like to go forward and buy the company,'' Heilig said. He said Bonar is disappointed, and ``the ball's in [Rotonics'] court.''