DynCorp, the McLean high-technology and services company that last week agreed to be taken private in a leveraged buyout worth $248 million, said yesterday that the buying group had raised its price to $267.3 million to top an offer from another bidder.
The increased offer, made by an employe-management group led by DynCorp President Dan R. Bannister, is equal to $24.75 a share, the company said. Last week, the company had agreed to a $23-a-share offer from the group. The company did not announce the price of the competing offer or the identity of the bidder.
DynCorp stock closed yesterday at $19, up $1.25.
The newest bid for DynCorp still is shy of a $25 a share, $270 million offer made Oct. 8 by a group led by Jorge Carnicero, the company's chairman. The company rejected that bid, saying it wanted to consider other offers. The stock market collapse later that month pounded DynCorp stock, which fell as low as $9 from a high of $24.62.
The company agreed to accept the Bannister group's offer, and Carnicero declined to bid again. The company said that neither Carnicero nor Florida financier Victor Posner, who owns 10 percent of DynCorp's stock, was behind the unidentified bid.
Under the sweetened offer, the Bannister group will pay DynCorp shareholders $20 per share in cash, $3.25 in a new issue of DynCorp debentures, and $1.50 in stated value of newly issued DynCorp preferred stock.
Company spokesman Lee Parker said DynCorp was pleased with the higher offer. "They've sweetened the kitty," he said.
"Twenty-five dollars in cash is not $24.75 in cash and other miscellaneous things," said Charles Frumberg, who follows the company for the Mabon Nugent & Co. brokerage in New York. "It's getting back up there ... but the world has changed. The $25 bid is no longer valid."
Frumberg said DynCorp's plan to go private through the Bannister group's leveraged buyout was spurred by fear that Posner could be planning a hostile takeover attempt. Posner has said he owns the stock for investment only.