Lancaster-based Herley has relayed that message to Veritek Manufacturing Services, according to public documents filed Monday.
Veritek, of Escondido, wrote to Herley last Wednesday saying it wanted to discuss a possible purchase of the local firm, which has been indicted by a grand jury and suspended by the military.
Veritek said it envisioned a potential acquisition worth more than $15 a share — or $231 million.
“We believe new ownership and management of Herley assets would be viewed favorably by its customers, vendors, employees and shareholders alike,” Veritek wrote.
But according to the filing by Veritek, Herley’s investment banker informed Veritek managing director Brian Kahn the next day that there was no interest in doing a deal.
The investment banker said Herley’s board “had reviewed the Letter and their response was that the Company was not for sale and that the management of the Company was not willing to speak with Mr. Kahn about the subject,” the filing says.
Veritek, an electronic components maker, owns 1.8 percent of Herley stock. Veritek’s owner, the Nevada-based Samjor Family Limited Partnership that’s also headed by Kahn, owns another 4.2 percent of Herley.
The filing shows Veritek and Samjor began buying Herley shares in mid-June, when news of the indictment and suspension depressed Herley’s stock price from $19 to nearly $9.
Herley and then-chairman Lee Blatt each were indicted on 35 counts of defense fraud on June 6. Both have pleaded not guilty to all counts. The Defense Department then prohibited the three Herley plants where the alleged fraud occurred from getting new defense contracts. Herley is trying to get the suspension lifted.
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