It’s always a little ominous when a letter of intent is extended instead of leading straight to definitive agreement, and Conner Peripherals Inc and Archive Corp have extended to November 18 the letter of intent for Conner to acquire Archive – but to show good faith, Conner agreed to buy about 1.9m new Archive shares at $6.75 per share, as contemplated in the original letter of intent: the remaining terms of the letter include Conner’s proposal to acquire Archive for $11.25 per share in cash; the extension is to provide more time for the parties to finalise the terms of the definitive agreement.
