Pegasus Solutions, Inc. (Nasdaq: PEGS) today disclosed that it no longer intends to make an offer to the
shareholders of HARS Systems Inc. ("HARS") (CDNX: HSS) to purchase all
outstanding common shares of HARS. Headquartered in Calgary, Canada,
HARS provides reservation distribution services through its wholly
owned subsidiary, VIP International Corp. Pegasus Solutions is a
leading provider of technology services to the hotel industry.
Predicated by Canadian disclosure requirements, on May 17, 2002,
Pegasus announced it had initiated efforts to acquire HARS at a cash
price of $0.62 CAD per share. On May 24, 2002, Trimin Capital
Corporation announced a competitive bid, increasing its offer to
acquire all outstanding HARS shares. In response, Pegasus announced
today that it has withdrawn its intent to continue in the bidding
process.
Commenting on Pegasus' decision to no longer pursue a potential
acquisition of HARS, Pegasus Solutions Chief Executive Officer and
Chairman of the Board John F. Davis, III said, "At our original offer
price, HARS and its VIP subsidiary was an attractive acquisition
target, but the competing bid and our further analysis of HARS'
business fundamentals led us to the conclusion that we could not
justify offering a higher bid to top Trimin's new offer. However, we
will continue to stay focused on finding and carefully analyzing
appropriate acquisition candidates to supplement Pegasus' continued
growth." |
