Koyote Trading LLC Welcomes 3M’s Ownership of Cogent Inc.; Organizes Call to Explore the Possible Formation of Committee to Discuss with 3M Amendments to Existing Cash Tender
October 13, 2010 at 11:36 AM EDT
Koyote Trading LLC, ("Koyote") an institutional owner of common stock of Cogent, Inc. (NASDAQ: COGT) welcomes 3M’s ownership of Cogent, Inc. which it acquired through its wholly-owned subsidiary Ventura Acquisition Corp.
“We are pleased that 3M acquired a 52% stake in Cogent last week principally through the acquisition of a 38.8% stake owned by the CEO Mr. Ming Hsieh. However, as we and other owners of Cogent have been saying for some time, the $10.50 valuation is clearly inadequate by any number of metrics,” stated Zachary Prensky, co-manager of the Special Situations desk at Koyote. As stated by 3M in a press release dated Friday, October 8th, 2010, less than 15% of the outstanding publically-owned common stock of Cogent was tendered to 3M.
Koyote intends to hold a conference call on Thursday, October 14th at 4:30 p.m. EDT with other owners of Cogent to explore the possible formation of an Ad-Hoc Committee of Minority Cogent Shareholders (the “Committee”). Shareholders of Cogent, other than 3M, who wish to participate on this call, are kindly asked to pre-register by emailing their name and affiliation to COGT@KoyoteCapital.com. After the appropriate confirmation of your contact information, you will then be provided with the dial-in information for the conference call.
"We applaud 3M’s long term commitment to a business that we are excited about. But the price offered is inadequate to 48% of Cogent shareholders that declined to participate in 3M’s tender. With the senior management and Board of Cogent committed to the $10.50 valuation, we have no choice but to explore the possible formation of a committee of shareholders to negotiate directly with 3M for a fair and adequate price for our stake. If 3M works with us, we believe we can find a middle ground that rewards minority shareholders for their long-term support of Cogent’s business plan,” added Mr. Prensky.