Open Wheel proceeds with CART acquisition

Purpose-formed US company Open Wheel Racing Series, which is undertaking the due diligence process associated with its agreement to acquire NYSE-listed series promoter Championship Auto Racing Teams, did not exercise its right to terminate the deal before yesterday's deadline. Open Wheel, which has offered 56c per share, is now entitled to a termination fee of $350,000 if the CART board accepts a superior offer

Sep 19, 2003, 11:11 AM

Under the agreement, CART retains the ability to pursue and accept a superior acquisition proposal, subject to the compensation that would have to be paid to Open Wheel. This termination fee would also become due if Open Wheel terminated the agreement because CART withdraws or adversely modifies its recommendation of the transaction to its stockholders, or takes action under its shareholder rights agreement to permit another person or entity to acquire 15 percent of its stock.

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