LaBarge Sued by Shareholder Over $340 Million Ducommun Bid
LaBarge Inc. (LB), the electronics- manufacturing services company being bought by aerospace component maker Ducommun Inc. (DCO), was sued by a shareholder who contends the $340 million offer is too low.
LaBarge is worth more than the $19.25-a-share bid partly because of the value of future contracts, Barry Borodkin said in a Delaware Chancery Court complaint filed yesterday in Wilmington. Borodkin said he owns 25,000 LaBarge shares.
The price “fails to reflect the substantial value” of anticipated work on United Technology Corp.’s Sikorsky Black Hawk helicopter, Raytheon Co. (RTN)’s Tomahawk cruise missile and Boeing Co. (BA)’s aerial-refueling tanker, Borodkin claimed.
Ducommun, based in Carson, California, said in a statement April 4 it would acquire St. Louis-based LaBarge to add new customers and markets. Ducommun reported sales of $408.4 million last year, compared with LaBarge’s fiscal 2010 revenue of $289.3 million.
“It is LaBarge’s practice not to comment on pending litigation,” said Colleen Clements, a company spokeswoman, in an e-mailed message.
LaBarge fell 1 cent to $19.07 in NYSE Amex trading at 2:25 p.m. The stock has risen 21 percent this year. Ducommun rose 1 cent to $24.26 in New York Stock Exchange composite trading.
The case is Borodkin v. LaBarge, CA6368, Delaware Chancery Court (Wilmington).
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