A company that sells support services to insurance companies is asking shareholders to help it be acquired.
BISYS Group Inc., Roseland, N.J., plans to hold a meeting Friday to so that investors can vote on a proposal that calls for Citigroup Inc., New York, to acquire BISYS for $1.45 billion and sell the company’s retirement and insurance units to a private equity firm for about $800 million.
Okumus Capital L.L.C., New York, a firm that owns an 11% stake in BISYS, announced in June that it is opposing the deal, but BISYS notes that Institutional Shareholder Services Inc., Rockville, Md., and Glass Lewis & Company L.L.C., San Francisco, two shareholder advisory firms, now have endorsed the proposed deal.
BISYS also has tried to increase shareholder enthusiasm about the deal by announcing that it will pay a one-time, special dividend of 15 cents per share once the Citigroup deal is completed.
BISYS hopes to complete the Citigroup deal Aug. 1st.
One anonymous participant on the Yahoo! BISYS message board says BISYS is worth more than Citigroup is paying, but other anonymous participants, including some who claim to be current or former employees, say they believe the price Citigroup is paying appears to be a fair price.