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REJECTED takeover bid from shareholder.

Houston-based Seitel Inc., a business of Toronto-based ValueAct Capital Master Fund LP, has made an unsolicited bid to acquire Pulse Data Inc., Calgary, (Toronto: PSD) for approximately C$149 million in cash. The offer is C$3.10 per Pulse share, which has 48 million shares outstanding. ValueAct holds 3.8% of Pulse shares. Pulse has rejected the offer as inadequate and significantly below the company's value. Pulse says it values the shares at C$3.0625 each, when considering that Seitel planned to reduced the price following Pulse's recent C$0.0375 quarterly dividend. Pulse adds that the price does not reflect seismic-data acquisition in the first half of the year. "The Seitel offer is opportunistic, as it was made at the end of a week in which the Toronto Stock Exchange Composite Index lost 99 points and the end of a four-week period in which the index lost 1,030 points," Pulse reports. Pulse had rejected an unsolicited bid from Alberta-based Quantum Yield Inc. for approximately C$146.2 million in debt. Pulse's primary business is acquisition, marketing and licensing of non-exclusive seismic data to the western Canadian energy sector, through Pulse Seismic. Its seismic library consists of approximately 11,400 net square kilometers of 3-D seismic data and 257,300 net kilometers of 2-D seismic. Subsidiaries Terrapoint Canada Inc. and Terrapoint USA Inc. provide airborne and ground-based digital terrain mapping and digital imaging to diverse markets. Standard & Poor's Ratings Services reports the unsolicited takeover bid by Seitel's subsidiary would not immediately affect the ratings on Seitel (B-/Stable/--). At the minimum, S&P expects credit measures to not worsen from management's targets of 4.0 times debt-to-cash EBITDA and 2.0 cash/EBITDA interest coverage.