Affiliate of White Electronic Designs chairman begins tender offer

By Lisa Kerner

Charlotte, N.C., Aug. 18 - Desert Equity LP began a tender offer to purchase up to 3.74 million shares, or about 16.3%, of White Electronic Designs Corp.'s outstanding common stock for $4.25 per share in cash.

Company chairman Brian Kahn is the sole member of Desert Management LLC, the general partner of Desert Equity.

The per-share offer price is an approximately 5% premium over White Electronic's closing stock price of $4.05 on Aug. 12, according to a Desert Equity news release. Aug. 12 was the last day before plans for the tender offer were announced.

Desert Equity said the offer and withdrawal rights under its offer will end at 12:01 a.m. ET on Sept. 16.

As previously reported, White Electronic amended its agreement with a shareholder group including Wynnefield Partners Small Cap Value, LP, allowing Kahn, through his affiliated entities Caiman Partners, LP and Kahn Capital Management LLC, to acquire ownership of up to 19.99% of the company's issued and outstanding common stock through a tender offer.

Caiman is providing the funds for the tender offer.

As part of the agreement with White Electronic, Kahn's entities agreed to vote for the company's nominees at the 2010 annual meeting.

Phoenix-based White Electronic manufactures microelectronic and display components and systems.

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