The tightened credit markets and the economic downturn were center stage in the bidding for Industrial Distribution Group Inc., Atlanta, GA, according to a proxy statement recently filed by IDG with the SEC about its plan to be acquired by Luther King Capital Management.
In fact, Platinum Equity, which was originally the winning bidder for the industrial distributor, had first bid $12 a share in December 2007 but reduced its offer to $10 a share in mid-January. The private equity firm cited risk in improving IDG’s MROP and integrated supply business due to an overall decline in the industrial economy.
This prompted investment banking firm Robert W. Baird &Co. to go back to five bidders for new written proposals. Among the five bidders was WESCO, who showed an interest in …
