HotJobs favors Yahoo takeover bid
Posted by configure on 25 December 2001 - 03:54 · no comments & 561 views
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Yahoo earlier this month offered to pay about $436 million in cash and stock for HotJobs, a bid that was deemed a superior proposal, HotJobs said.
A spokesman for TMP, which owns leading online recruitment site Monster.com, declined comment, but said the company may issue a statement later Monday. TMP has 72 hours to make an offer that is "as favorable" to HotJobs shareholders, HotJobs said.
The value of TMP's offer has dropped to about $341 million currently from about $498 million, based on the closing price of its shares on the day the deal was announced on June 29. The change was due to a decline its stock price.
TMP agreed to buy HotJobs, the No. 2 player in the field, in a deal initially valued at around $460 million.
TMP would be entitled to a termination fee of $15 million and reimbursement of up to $2 million in other expenses if HotJobs spurns its offer in favor of the Yahoo bid, HotJobs said.
The all-stock TMP offer has been held up by the U.S. Federal Trade Commission, reportedly due to antitrust concerns. On Dec. 12, Sunnyvale, Calif.-based Yahoo made an unsolicited offer to acquire HotJobs for $10.50 per share. With TMP's stock decline, its offer is now worth the equivalent of about $9.02 per HotJobs share, based on the offer price of 0.2195 TMP shares per HotJobs share and TMP's closing stock price on Friday of $41.10.
HotJobs shares rose 18 cents to $10.65, while TMP slipped 3 cents to $41.07, and Yahoo was off 2 cents to $16.90, all on Nasdaq on Monday.
Some analysts have estimated that $1 billion of the $10 billion market for job classified advertising is spent on the Internet. The market for online recruiting has held up better than much of the dot-com world in the current recession.
HotJobs has about 5 million resumes in its database. The company reported a loss of $4 million on revenues of $27.5 million in its latest third quarter.