By Sam Boughedda
Investing.com — Tessco Technologies Incorporated (NASDAQ:TESS) stock jumped 36% after Lakeview Investment Group & Trading Company said it offered to acquire the company for $7.50 per share.
The cash offer represents a 45% premium to the technology firm's most recent closing share price. Tessco shares closed at $5.17 on Monday.
Lakeview already owns approximately 14.9% of the outstanding shares of Tessco, making it the company's second-largest stockholder.
The investment firm has, for the second time, called upon the company to conduct a "full and fair" process for its sale. Lakeview stated that the Tessco board "inexplicably continues to cling to the status quo," and that a previous private offer was met with a lack of constructive engagement.
They added: "We are fully prepared to stand behind our conviction that the Company should be sold, and today are proposing to acquire 100% of the shares of the Company not already owned by Lakeview at a price equal to $7.50 per share in cash."
In a scathing assessment of the company, Lakeview said Tessco has suffered from a range of value-destroying decisions made by unfocused leadership with no clear strategy for improving its performance.
Today's announcement isn't the first time Lakeview has expressed its frustration at the Tessco board. It issued a statement back in June, also urging the company to conduct a "full, fair" sale process. In July, Tessco told investors it may consider a sale, but it was not their focus at the time.