Shareholders increase pressure on Pivot Technology to pull deal – FINANCIAL NEWS-ecozik.com
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Shareholders increase pressure on Pivot Technology to pull deal

Pivot Technology Solutions is a California-based TSX Venture listed company.

The board of Pivot Technology Solutions, a California-based TSX Venture listed company that recently agreed to a share exchange whereby several insiders would acquire control without having to pay any cash, have now been put on notice by one of its large public shareholders.

A few days when Pivot announced its support for any deal whereby shareholders (apart from the what Pivot calls a “Founder Group” which owns 18 percent) would exchange their common shares for higher yielding preferred securities, Toronto-based investment company Torrent Capital said hello “vehemently opposes” the arrangement.

Torrent, which has in regards to a five percent stake within the company that has about US$1.5 billion in revenue, listed its objections: the offer undervalued Pivot; control had been given up for no premium with no cash payment; all of the upside would flow to the so-called Founder Group; and the lack of a proper valuation. Torrent said hello was looking forward to dealing with other stakeholders to be able to “maximize shareholder value.”

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