Bidz.com Acquisition Delayed AgainThursday, October 11, 2012
Online jewelry auction company Bidz.com Inc. on Thursday said that it had given the company hoping to take it private more time to close the deal.
The Culver City company on May 17 announced that it had signed a merger agreement with Glendon Group Inc., in which founder and Chief Executive David Zinberg, and his sister, Marina Zinberg, have a financial interest, according to regulatory filings. The Zinbergs are the Bidz.com’s two largest shareholders, controlling more than 34 percent of shares.
Glendon Group of Santa Monica currently has a 2.7 percent stake in the company. Its principal is Kia Jam, president of K. Jam Media, a film and television production and financing company with projects including the film “Father of Invention,” a 2010 comedy-drama starring Kevin Spacey.
Bidz.com agreed to be acquired for 78 cents in cash, a 59 percent premium over its closing price before the announcement. Shareholders approved the deal on Sept. 28, and it was expected to close by Oct. 1.
The company on Oct. 4 extended the deadline until Oct. 10 at Glendon’s request. With that deadline past, it said it has given Glendon until Monday to complete the deal. It did not provide a reason for the delay in its announcement. Bidz.com representatives did not respond to requests for comment and a Glendon representative could not be reached for comment.
Bidz.com was founded in 1998 and operates as an online, live auction retailer of diamonds and jewelry. A sister service, Modnique.com, is a flash sale website of branded merchandise.
Shares closed down 3 cents, or 4 percent, to 66 cents on the Nasdaq.