Almost a year in the making, the majority owner/management team of General Bearing Corporation (West Nyack, New York) has now abandoned its buyout plan.

A management-led buyout was originally announced in July 2000, to be completed by or about September 1, 2000.
• click here to read the original announcement article

On August 24, 2000 the offer was extended to December 1, 2000. Management did not comment as to why the offer was not completed as expected.
• click here to read the article about the first extension

On December 1, 2000, the offer date was extended once again without explanation, this time to March 1, 2001.
• click here to read the article about the second extension

On January 23, 2001, General Bearing officially signed the agreement to be acquired by the management buyout team for USD $6.50 per share in cash, subject to shareholder approval and certain financing contingencies. At the time, the company said it expected the transaction to close during Spring 2001. • click here to read the January 23 management buyout article

Yesterday, the company officially announced the management group had withdrawn its offer and the buyout offer and process has been abandoned.

The management group cited a number of factors which led to abandoning the buyout effort, most notably the expiration on March 31 of a loan commitment. The lender indicated that it was not willing to extend the commitment letter beyond March 31, given the current economic climate.

Since the management buyout was originally announced, General Bearing's stock has avoided the market volatility affecting many manufacturers, staying in the relatively narrow trading range of USD $5.06 to $6.50.