Breaking News: Upper Deck buying Topps?
By now, everyone has heard about the $385 million ($9.75 a share) offer that the Michael Eisner-led group made to buy The Topps Company. Yesterday it was announced that Upper Deck made a $424 million ($10.75 a share) bid for Topps.
So far, 3 of the 10 Topps board members have opposed the Eisner bid. One member said that it undervalued the company. Topps said that some of the issues that they have with Upper Deck's bid include "financing commitments, a due-diligence review and what Topps said was Upper Deck's insistence on limiting its liability if antitrust regulators don't approve the proposed acquisition." (Source: The Wall Street Journal, 5/25/07).
Can you imagine one huge card company controlling all NBA brands, and nearly all MLB & NFL brands? Personally I think that even if Topps' board approves this sweeter offer, regulators will shoot the deal down. I'm guessing that the two companies together produce over 95% of the cards out there. Especially with Fleer already being absorbed into the Upper Deck family, how could this be allowed? Talk about lack of competition! Upon receiving the news, investors pushed Topps' stock up to a $10.26 close yesterday.
In addition to anti-trust regulators, Major League Baseball must also approve the deal.