ITEX continues to reject Western Sizzlin's unsolicited offer

By Lisa Kerner

Charlotte, N.C., March 25 - ITEX Corp. called Western Sizzlin Corp.'s unsolicited offer to acquire ITEX "wholly inadequate," despite the removal of offer conditions.

The board of directors once again recommended ITEX shareholders reject the unsolicited offer of 0.06623 of a share of Western Sizzlin common stock for each share of ITEX, a company news release said.

According to ITEX, the value of the consideration being offered is uncertain, illiquid and fully dependent on the future value of Western Sizzlin common stock.

Since Dec. 27, Western Sizzlin's stock price has declined by some 12% and hit a low of $12.80, and there have been nine days with no trading activity, ITEX chairman and chief executive officer Steven White said in the release.

On March 13, Western Sizzlin dropped its previous requirement that Western Sizzlin acquire 60% of ITEX's shares in the exchange offer.

"Essentially admitting failure, Western Sizzlin can now accept whatever shares are tendered with no minimum," White said.

As previously reported, Western Sizzlin extended its offer to March 26 from Feb. 28.

Some 900,174 shares of ITEX common stock had been tendered at the close of business on Feb. 28, a previous Western Sizzlin news release stated.

Based in Bellevue, Wash., ITEX operates a marketplace for cashless business transactions for member businesses in North America.

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