MONTREAL -- The second-largest shareholder of Dorel Industries says it won't support a proposal to take the company private under the terms offered Monday.
Montreal-based investment firm Letko, Brosseau & Associates Inc says it controls about 13.1 per cent of Dorel's subordinate voting shares, making it the second-largest individual investor after the company's controlling family, which includes Dorel CEO Martin Schwartz.
Dorel announced Monday that the Schwartz family, working with New York-based Cerberus Capital Management, have offered $14.50 per share to buy out other investors and delist the company's stock.
Letko, Brosseau says in a statement that it believes Dorel has a resilient business and the controlling family's desire to remain shareholders under the going private plan is evidence of Dorel's long-term potential.
The Dorel board's independent directors have given the family and Cerberus until Nov. 10 to negotiate a definitive transaction.
Dorel's subordinate shares gained 66 cents on Monday to close at $15.05, which was above the going-private price announced earlier in the day. The stock was slightly lower in early trading on Tuesday at $14.90.
Dorel sells car seats, strollers, bicycles and home furniture under various brands for markets around the world.
This report by The Canadian Press was first published Nov. 3, 2020.
