By Imani Moise, Dow Jones Newswires
Activist investor ap Inc. sought to almost double its stake in Monster Worldwide Inc., keeping the pressure on the job-listing company, which reported a surprising loss Friday.
MediaNews, already the largest stakeholder with a nearly 12 percent stake, launched an effort to buy a further 10 percent stake in Monster at $3.70 a share. MediaNews can’t build up more than a 25 percent stake without tripping Monster’s change-of-control mechanism in a credit agreement.
The offer from MediaNews — parent to The Denver Post and dozens of other Colorado newspapers — represents an 8.8 percent premium to the share price in Monster’s pact with Dutch recruitment firm Randstad Holding NV. In August, Randstad agreed to buy Monster for $429 million, or $3.40 a share.
Monster continued to recommend that stakeholders accept the Randstad offer Friday, saying that it was the best deal available because stockholders would receive cash for all shares.
“This is yet another attempt by MNG to derail Monster’s transaction with Randstad in order to take control of the company without paying a control premium to all Monster stockholders,” Chief Executive Tim Yates said in prepared remarks. A representative from Randstad wasn’t immediately available for comment.
MediaNews has criticized the Randstad deal, calling it the definition of “selling at the bottom” and has tried to rally shareholder support. Last month, the activist investor said it planned to nominate seven members to replace Monster’s entire board, citing a lack of confidence in Monster’s current management.
Monster shares rose 1.8 percent to $3.43 in morning trading in New York.
Also on Friday, Monster reported a surprising third-quarter loss and a bigger-than-expected decline in revenue.
Monster reported it swung to a loss of $180.5 million, or $2.03 per share, during its third quarter compared with a profit of $175.8 million, or $1.98 a share, a year earlier. On an adjusted basis, the company posted a loss of 5 cents a share.
Analysts polled by Thomson Reuters expected earnings of 1 cent a share on revenue of $150.7 million.
Revenue slipped 13 percent, to $144.8 million, led by a 16 percent decline in its North American business.
The job-posting service suspended its guidance because of the Randstad acquisition, which it still expects to close in the current quarter.
