Evolutionary bid

23 April 2007 By Robert Cyran Follow @rob_cyran

Darwin Deason, founder and chairman of the IT services company, warned his new, higher buyout bid is his best and final. His promise to give up multiple voting rights if the deal comes to a poll is the right thing to do. But his offer still looks too low.

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Darwin Deason, the founder and chairman of Affiliated Computer Services (ACS), who is bidding for the company in conjunction with Cerberus, has raised his buyout offer. The new bid of $6.2bn, or $62 per share, represents a 5.5% premium to their initial one and a 21% premium to the preannouncement closing price. A special committee composed of independent directors refused to negotiate with Deason on his earlier bid.

Deason owns 9% of the IT services company's stock, but controls 38% of its votes due to ACS' dualclass voting structure. Deason says he will waive his multiple voting rights on any vote on his proposal, but not any competing bid. The offer contains a break fee equal to 1.5% of ACS' market capitalisation. Deason and Cerberus say this is their final offer.

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