Can't write much as I'm on the clock right now, but Katz's offer looks to be now all but a done deal with the EIG stated today that the so-called "Plan B" to scrape together funds for a counteroffer is officially off the table.
From the Journal, via the National Post:
The so-called Plan B proponents have thrown in the towel and the sale of the Edmonton Oilers to local billionaire Daryl Katz is all but guaranteed.Interesting stuff. I wonder what Bettman had to say to Butler about all this?
A fax was sent to all 34 members of the Edmonton Investors Group this afternoon, taking the Plan B option off the table. There will be no attempt made by a core group of EIG investors, including Gary Gregg and Jakob Ambrosius, to raise the necessary millions to buy out their fellow shareholders who wish to sell. As well, Katz's deadline for closing the sale has now been extended to Feb. 5 from Jan. 31.
A Sunday meeting between Katz Group lawyer John Karvellas and two board members of the Edmonton Investors Group, Brian Nilsson and chairman Bill Butler, precipitated this development. According to the fax, Karvellas said the summit meeting was spurred by a weekend telephone call from National Hockey League commissioner Gary Bettman to Butler.
However, according to an EIG source, the shelving of Plan B had more to do with the fact Katz bumped his offer to $22,000 per share for a net tax equivalent of $200 million. The new bid, forwarded through an intermediary last Wednesday to at least one holdout shareholder, represented a 6.3-per-cent increase over Katz's fourth offer of $20,687 per share for an equivalent of $188 million.
"The extra money, frankly, was the backbreaker for Plan B," said an EIG investor who has already agreed to sell to Katz. "He broke the backs of the guys trying to raise the money. They have agreed not to proceed with Plan B. They have agreed to negotiate only with Rexall Sports. And we now have until Feb. 5 to get it done."