Exclusive: AT Cross rebuffs buyout approach -source

By Richard Lee

NEW YORK (BestGrowthStock) – AT Cross (ATX.O: ) has rebuffed an approach led by mid-market private equity firm RDG Capital to take the storied pen and pencil maker private, a source familiar with the situation said.

AT Cross, which has a market capitalization of $76 million, has two units, an accessory division, which sells its signature pens, and an optical unit, which sells its two premium sunglass brands.

The private equity buyer would be interested in dividing the two businesses in order to sell them separately, the source said.

The two business are distinct and would likely attract different buyers. An analysis of the break-up could potentially fetch stakeholders a value about twice the company’s current share price, according to a Reuters analysis.

RDG declined to comment. AT Cross could not be reached for comment.

The company’s shares closed 6 percent higher, or 40 cents, at $6.60 on Nasdaq.

The pen company in July bought back 1.25 million shares for about $5 million.

RDG earlier this year offered to buy Benihana (BNHN.O: ), which runs Japanese-style restaurants.

(Reporting by Richard Lee, writing and additional reporting by Megan Davies; Editing by Steve Orlofsky, Gary Hill)

Exclusive: AT Cross rebuffs buyout approach -source