Tessco rejects buyout offer from Discovery Group

Tessco rejects buyout offer

NEW YORK — Tessco Technologies Inc., which makes products used to build wireless systems, said Thursday that its board unanimously rejected a buyout proposal from Discovery Group.

Tessco said its board found Discovery’s offer to buy the remaining shares of Tessco at $15.50 “grossly inadequate.” Discovery Group made the offer to buy the remaining Tessco shares that it does not already own in a letter Sept. 22.

Earlier in the day, Tessco noted that its revenue and earnings per share are expected to hit an all-time high in the second quarter.

Tessco said that its stock traded above Discovery Group’s proposed $15.50 per share price as recently as July 12.

The company also noted that it’s positioned to benefit from the global economic recovery as demand for wireless products continues to increase.

Shares of Tessco gained 73 cents, or about 5 percent, to $15.80 in after-hours trading, after closing up 4 cents at $15.07 in the regular trading session.