Directors at Philadelphia-based Technitrol Inc must be looking with dismay at the nine months figures from GTI Corp. GTI’s third quarter net losses have soared to $4m from just $1m a year ago, while revenues dropped 47% to $10m. Technitrol is committed to pay $33.8m for GTI. When it made its $3.10 a share offer in May (CI No 3,414), Technitrol knew it was buying a loss-making company, but reality dawned and Technitrol tried to get out of the deal in August, claiming that GTI was in breach of certain of its representations and warranties in the merger agreement. GTI then applied for a court order to force closure of the deal and Technitrol backed down earlier this month (CI No 3,532). The deal is due to close next week and Technitrol will have to make the best of its dreadful acquisition.
