Wynnefield Capital asks Nobel Learning to negotiate with Knowledge Learning, explore alternatives

By Lisa Kerner

Charlotte, N.C., Oct. 23 - Nobel Learning Communities, Inc. investors led by Wynnefield Capital, Inc. urged the company's special committee to engage in direct discussions with Knowledge Learning Corp. about its acquisition offer.

Wynnefield also encouraged the board to explore other potential strategic and financial alternatives, according to Wynnefield's Oct. 22 letter to Nobel Learning. The letter was included in a schedule 13D filed with the Securities and Exchange Commission.

Wynnefield made a similar plea to Nobel Learning's board in September.

"The company's strategy of growth through a string of small acquisitions has failed to generate value or enthusiasm for the company's stock and, given the current freeze-up of the credit markets and the depressed equity markets, the ability of the company to continue to execute such strategy, even if appropriate acquisition targets were available for purchase, is highly problematic," Wynnefield's letter said.

As previously reported, Knowledge Learning wants to acquire Nobel Learning for $186 million, or $17 per share in cash.

Nobel Learning is a national network of 178 nonsectarian private schools, including preschools, elementary schools and middle schools, in 15 states. The company is located in West Chester, Pa.

Knowledge Learning is an early childhood and school-age education and care company based in Portland, Ore.

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