Recall last week all the buzz in the Geo Tech arena was word of the GeoEye bid of $792 million for DigitalGlobe (See GeoEye Proposes Acquisition Of DigitalGlobe). Well, it seems the Longmont CO based crew at DigitalGlobe weren’t too thrilled with the offer and have not only flat out rejected it but the DigitalGlobe brass have penned a response in writing to them and cc’d the World on it as well – seems DigitalGlobe isn’t too pleased about the previous attempt at them at acquiring GeoEye… one can likely assume that these two companies won’t be holding hands any time soon! And in response to this GeoEye sent out the following… GeoEye Disappointed by DigitalGlobe, Inc.’s Rejection Of the Proposed Acquisition
The full text of the letter sent today to Matthew M. O’Connell, Chief Executive Officer of GeoEye follows:
May 6, 2012
Mr. Matthew M. O’Connell
President and Chief Executive Officer
2325 Dulles Corner Blvd
Herndon, VA 20171
We are writing in response to GeoEye’s unsolicited conditional “public offer” to acquire DigitalGlobe made in your letter dated May 4, 2012. Our board of directors has met, has carefully considered your proposal and has concluded that GeoEye’s proposal is not in the best interests of DigitalGlobe and its shareholders. Accordingly, DigitalGlobe rejects your offer. Given the abruptness of your “public offer” and our past discussions, we believe you made your hostile bid in desperation due to well-publicized concerns about potential government decisions that may jeopardize your portion of the EnhancedView program.
We believe you initiated discussions with us with your unsolicited highly conditional private offer on February 7, 2012 because you were concerned about a disproportionate risk of budget cuts affecting GeoEye. We believe you have mischaracterized subsequent discussions in your May 4 letter as well as during your Friday investor call. In fact, we believe your public description of such discussions in your May 4 letter is materially misleading and incomplete.