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CART rejects offer

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  • CART rejects offer

    So says the Star:

    The board of Championship Auto Racing Teams, Inc. on Monday rejected a tender offer for the financially troubled series but said it will continue to negotiate with a group headed by team owner Gerald Forsythe.

    In a filing with the Securities and Exchange Commission, Forsythe's group -- which includes fellow team owners Kevin Kalkhoven and Paul Gentilozzi and is called Open Wheel Racing Series -- offered 50 cents a share, or $7.4 million. The CART board exercised its right to reject the offer without submitting it to shareholders.

    The announcement of the lowball bid had an immediate effect on Wall Street. CART stock closed Monday at $1.30 a share on the New York Stock Exchange, down 53 cents -- or nearly 30 percent -- from its close Friday.

    In a news release announcing the rejected offer, CART said that while it "declined to sign the letter of intent, it is engaged in negotiations regarding a possible transaction."

    The CART board can present a counter-offer to Forsythe's group or wait for them to sweeten the pot. Meanwhile, the search will continue for other potential buyers.

    Indy Star

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