Newspaper article THE JOURNAL RECORD

Doskocil to Begin Reducing Price of Wilson Offer

Newspaper article THE JOURNAL RECORD

Doskocil to Begin Reducing Price of Wilson Offer

Article excerpt

by Doskocil Companies Inc. will be reduced by 2 1/2 cents per share each day until it falls to $12.25, according to a letter sent by Doskocil to Wilson.

In a letter sent to the Oklahoma City meat packer over the holiday weekend, Doskocil said it was willing to negotiate a purchase of Wilson at $12.50 per share until 9:00 a.m. on Tuesday. After that time, Doskocil, a South Hutchinson, Kan., meat processor said it would decrease the price.

David Smoak, Spokesman for Doskocil said the company was "disappointed" Wilson showed no interest in the meeting with Doskocil. He also said Doskocil would not be willing to raise its offer again because of mounting legal costs surrounding the proposed merger.

"Our board will not be intimidated," said Kenneth Griggy, chairman and chief executive officer of Wilson, "by Doskocil's pressure tactics."

"The interests of our shareholders are too important to permit that," he said.

Contrary to the impression Doskocil is trying to create, Griggy said, Wilson was actively working on other transactions with a number of third parties whose names he did not disclose."

"We continue to be ready to engage in discussions with Doskocil," he said "if Doskocil is prepared to go forward on a reasonable basis. In fact, our attorneys have been authorized to meet with Doskocil's attorneys in an effort to negotiate the terms - other than price - of a definitive merger agreement.

"Doskocil said it lowered its offer from $12.50 to $12.25 per share to reflect additional costs in pursuing litigation against the company. In the present circumstances, it may well be that the only additional costs that Doskocil must incur are the costs of a fair price and the relatively minimal incremental costs of developing a mutually acceptable agreement. …

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