|anyone hear who purchased Cannondale? nm||KellyCross|
Mar 20, 2003 7:00 PM
|Auction was today, probably not announced yet||geeker|
Mar 20, 2003 8:00 PM
|From the _Bicycle Retailer_ site:
"MARCH 19, 2003 -- BETHEL, CT (BRAIN)--All parties interested in buying Cannondale's bicycle and motorcycle divisions have submitted their bids and are awaiting tomorrow's closed-door auction at the bike maker's Bethel offices. As dictated by law, Cannondale did not disclose the bidders' identities.
Scott Montgomery, Cannondale's vice president of marketing, said that while he was unable to comment on the auction or bidders, he felt good about the company's future.
'We're all just waiting to hear the outcome of the big fest on Thursday. I'm not sure what the outcome will be, but I'm pretty optimistic that it won't be any of the scary ones,' he said.
Although the auction takes place tomorrow, the new owner may not be announced until later, Montgomery said."
|The winner is...Pegasus||geeker|
Mar 21, 2003 11:58 AM
|Pegasus Partners, the company's biggest creditor at the time of bankruptcy, won the auction. This is what I expected. Pegasus is a "vulture fund" who invests in troubled companies / bankruptcy situations, and they were the "stalking horse" bidder, which gave them an inside track. I figure that Pegasus always intended to operate the bike business for a couple of years, return the company to profitably, and *then* sell out at a profit. Pegasus probably has a good relationship with existing (prior?) management (Montgomery).
From _Bicycle Retailer_:
"BETHEL, CT (BRAIN)--Cannondale's new owner is Pegasus Partners, the lender that put up an estimated $60 million stalking-horse bid in January when the bicycle and motorcycle company filed for Chapter 11 bankruptcy protection."