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CDI Launches Hostile Bid

CDI Launches Hostile Bid
US Based CDI Corp has launched a hostile bid to buy RCM Technologies for about $68 million, a fortnight after it had approached RCM board with an offer.
The $5.20 per share offer implies a premium of about 49 percent to RCM stock's closing price Thursday.
RCM board, however, rejected the offer saying it would not be in the best interests of the company to pursue the transaction "as presently structured" by CDI.
Earlier, CDI said it had approached RCM board on May 21 but did not get any response.
Over the last several months, CDI said, it had a number of conversations with RCM Chairman Leon Kopyt about the proposal. "Unfortunately, these conversations have not been fruitful," CDI said in a statement.
RCM provides IT services to a host of industries and had revenue of $189.3 million for the year ended Jan. 2.
RCM shares rose 43 percent to $5.00 after the bell. They closed at $3.50 in regular trade on Nasdaq.
CDI shares closed at $16.32 on the New York Stock Exchange.

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