Technology Research

Technology Research Corp. (TRCI) said it received an unsolicited indication of interest from Coleman Cable Inc. (CCIX) to acquire the company in a deal valued at $38 million. Technology Research shares were up 32% at $5.16 in recent trading, while Coleman shares fell 2 cents to $6.70. Coleman, a maker of wire and cable products, is offering $5.50 a share, a 41% premium to Friday's closing price. From April through August, Coleman acquired 323,710 shares of Technology Research's stock in a series of open market transactions. Technology Research has about 6.9 million shares outstanding. Technology Research's board adopted a two-year shareholder rights plan, or poison pill, an effort typically used to ward off unwanted takeovers. The pill would go into effect if a person or group acquires a stake of at least 15% in the electrical-safety products company. The board also is reviewing the proposal, according to its filing with the Securities and Exchange Commission. Later Tuesday, Coleman President and Chief Executive Gary Yetman said his company had engaged Technology Research's board "on a number of occasions." He said Coleman was disappointed the board adopted a poison pill "to block a transaction that is clearly friendly to its shareholders." Coleman first proposed an offer price of $5 to $5.50 a share last month, but earlier this month received word from Technology Research that it wasn't interested in discussing the proposal. Technology Research in November reported its fiscal second-quarter earnings slumped 74% amid sharply lower margins and a 30% increase in overhead costs. Revenue fell 4.7%, mostly on lower revenue at its military segment amid order and program delays and prior-year heavy deliveries to its largest military customer. Meanwhile, Coleman reported in November its third-quarter earnings nearly quadrupled amid stronger margins and its net sales jumped 40%, though it issued cautious fourth-quarter guidance amid rising copper prices.