TNS Inc. has asked a group of investors that are bidding to buy the company to submit their "best and final offer."
The Reston, Va., communications services provider said Wednesday that the suitors, led by former TNS chairman and chief executive John J. McDonnell Jr., have until late January to name their best price and to provide confirmation that financing for a deal is in place.
Mr. McDonnell said last month that his group had acquired 5.2% of TNS' outstanding shares and offered $20 a share for the rest of the company.
Mr. McDonnell and the company he founded in 1990 have had a contentious relationship in the past year. In March he offered to buy it for $22 a share, but the board deal rejected the offer in August and then replaced him as chairman. The following month the board also found a new CEO, though Mr. McDonnell stayed on as a director until his resignation in October, when he vowed to attempt another buyout.
Chris Penny, an analyst with Friedman, Billings, Ramsey & Co. Inc., has placed a $22 price target on TNS' shares. He wrote in a research note published Wednesday that the company's board, while not rejecting Mr. McDonnell's offer, is hoping he will raise it. He also reiterated his "outperform" rating on the stock.
"The board is essentially asking Mr. McDonnell to lay down his hand and show his best and fully committed offer," Mr. Penny wrote. "These actions today clearly show that management is willing to listen."
