Antitrust Investigators put brakes on Toyota Industries’ takeover bid for Cascade Corp .

7 Mar

Toyota’s indirect but wholly owned subsidiary, Industrial Components and Attachments II, has offered to pay $65 per share for all the outstanding common stock in Cascade Corporation, which manufactures parts for load-bearing devices for the lift truck and construction industry.

Computershare Trust Company, N.A., the depositary for the offer, informed Toyota Industries Corporation (TICO) that 28.3% of Cascade’s outstanding shares had been traded in by shareholders, as of 5.00pm NY time, March 6.

However, the process has been stalled by information requests by the Antitrust Division of the Department of Justice.  TICO responded to the second request on 15 February, for “additional information and documentary material,” spokesmen revealed, and “provided a timing commitment… not to close the transaction prior to 30 days thereafter without the consent of the Antitrust Division and to provide at least 10 days notice… prior to consummating the acquisition of Cascade.”

On March 4 it extended the Antitrust Division’s window of enquiry to 40 days, with the same vow to give 10 days notice before closing the deal. Cascade informed TICO it had also been called upon to release documentary material, and was fully cooperating in the review of the anticipated transaction, “in order to respond to and resolve expeditiously any questions the Antitrust Division may have,” TICO reported.

The Offer is now scheduled to expire at 12:00 midnight, New York City time, on Wednesday, March 27, 2013. TICO intends to go through with the transaction immediately upon receiving regulatory approval.

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