PHOENIX, Ariz. (HedgeWorld.com)–Quepasa.com Inc. announced a lawsuit against hedge fund manager Robert E. Dixon and various entities under his control, at the same time that it rejected Mr. Dixon’s unsolicited buy-out offer.
Quepasa is a Nevada-chartered company that operates a Spanish/English web portal, marketing especially to the Hispanic population of the United States.
Quepasa’s president, Jeffrey Peterson, said in a statement that he believes Mr. Dixon’s tender offer is not a good faith effort at acquisition but a case of greenmail.
“For months, they have been aggressively trying to sell those shares back to Quepasa at a profit, in as short a period of time as possible–to address what would appear to be their own internal liquidity problems,” said Mr. Peterson, who added that his company will not “entertain any proposal that works to the advantage of any group in connection with such underhanded agenda as greenmailing.”
A Troubled Dot-Com
Quepasa had its initial public offering in 1999 and, in the process, raised net proceeds of US$55 million.
The bursting of the dot-com bubble the following year hit Quepasa very hard, and by December 2000, management announced that it was considering the liquidation of its assets if it could not find a buyer.