An Aspinwall investment firm is seeking an answer by late today for its offer to buy Tollgrade Communications Inc. for as much as $79.4 million.
Bradford Capital Partners said in a filing today with the Securities and Exchange Commission that it owns 11.7 percent of Tollgrade's stock, and would pay between $5.50 and $6 a share for all the remaining shares. Harmar-based Tollgrade makes test software and equipment for telecom and cable networks.
The SEC filing includes a letter to CEO Joseph Ferrara, dated Sunday, expressing disappointment that Tollgrade's directors wouldn't discuss a possible acquisition.
Bradford "has the financial resources to acquire Tollgrade and allow it to operate as a privately held enterprise," the letter from Martin J. Calihan, an agent for Bradford, said, adding the firm could take "any and all" steps to allow shareholders to benefit from such as deal.
Tollgrade spokesman Bob Butter had no immediate comment.
Tollgrade's stock was trading today at around $4.80, in a market moving downward. Its share price has dipped by 72 percent in the last five years, and 39 percent so far this year, the letter pointed out.
Based on the company's guidance, Tollgrade is on track to generate revenue of $55 million to $58 million, this year, which is 25 to 29 percent below last year, the letter said.
Still, Tollgrade in late October reported its first profitable quarter in a year, and said it would move forward with a new focus on software service products for the telecommunications industry. The company's board also approved repurchasing up to $15 million in shares.
Investment banking firm Needham & Co. LLC helped Tollgrade with a strategic review earlier this year to chart its future. Ferrara, a former chief executive at Marconi's North American operations, became CEO of the company just over a year ago.
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