Eddie Antar Withdraws Bid For Crazy Eddie
EDISON, N.J. (AP) _ Eddie Antar and Canada’s Belzberg brothers have withdrawn their $7-a-share offer for Crazy Eddie Inc., the discount electronics chain that Antar founded and heads as chairman, the company said Wednesday.
The Belzbergs’ First City Capital Corp. and Antar said in a letter that ″events since the date of our proposal, including our discussions with potential lenders″ led to the decision to withdraw the offer, Crazy Eddie said.
Two weeks ago, another suitor of the troubled electronics chain dropped out of the bidding.
Entertainment Marketing Inc. of Houston abandoned its $8-a-share offer but said it might seek control of the company if Antar dropped his bid.
Entertainment Marketing spokeswoman Andrea Baker said the company would comment on Antar’s withdrawal on Monday.She noted that the company’s president, Elias Zinn, was out of town. ″He really wants to pause and figure out our options,″ she said.
On May 20, Antar and First City proposed to buy the 86 percent of the Crazy Eddie shares they do not already own.
In their letter, First City and Antar said they were ″prepared to work with the company toward a mutually acceptable transaction.″
Neither Antar nor First City could be reached for comment. The reclusive executive rarely surfaces and does not speak to reporters. Messages left at First City’s Vancouver, British Columbia, offices were not returned.
Crazy Eddie’s stock sunk to a new low Wednesday in late over-the-counter trading. It was down 62.5 cents to $3.875. Shares had traded in the $21 range last year.
The company has been buffeted recently by turmoil in the executive ranks, shareholder suits, and news that the Securities and Exchange Commission is investigating it. Further, Chemical Bank has suspended Crazy Eddie’s $52 million line of credit.