Gilat Satellite Terminates Buyout Deal With Investors, Cites Deliberate Breach Of Terms

(financialwire.net via COMTEX) -- GILT | Quote | Chart | News | PowerRating -- September 2, 2008 (FinancialWire) -- Gilat Satellite Networks Ltd. (NASDAQ: GILT | Quote | Chart | News | PowerRating) said that it is exiting a deal with a group of private investors who had intended to buy the company and has said that those buyers intentionally breached the terms of their agreement.

Israel-based Gilat said the investors also failed to close the deal prior to its Thursday deadline, and offered numerous verbal proposals that differed substantially from the original agreement since being notified of the deadline.

The investors initially approached Gilat in March to buy the company for $475 million, or $11.40 per share. The group included The Gores Group LLC, Mivtach Shamir Holdings Ltd., DGB Investments Inc. and companies affiliated with Roy Ben-Yami, Ami Lustig and Eytan Stibbesaid.

Gilat said the investors did not intend to close the deal at the initial agreed-upon price. Terms of the deal provide for a termination fee of $47.3 million, payable to Gilat by September 10, if the deal is intentionally breached.

Shares of Gilat fell 43 cents, or 5.4 percent, to close at $7.55. They earlier hit a year low of $7.45, after ranging between $7.50 and $11.34 for the past 52 weeks.

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