Pre-Paid Legal considering buyout offer

Ada, OK-based Pre-Paid Legal disclosed a $60 per share buyout offer on Monday.

BY DON MECOY | Published: October 26, 2010 Comment on this article

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Conference call scheduled

Pre-Paid Legal Services Inc. has scheduled a conference call to present its third-quarter results at 7:30 a.m. Wednesday. The company only responds to questions it selects that have been e-mailed in advance of its conference calls.

Pre-Paid disclosed the $60 per share offer from a "well-known private equity firm” early Monday, and the company's stock rose more than 11 percent before closing at $62.74. It was the third-largest percentage gainer on the New York Stock Exchange.

The company said directors also were evaluating other "strategic alternatives to enhance shareholder value” that did not include the sale of the business.

The potential buyer was not identified, and Pre-Paid said if the company or its advisers publicly disclose details of the proposed offer, it would be withdrawn.

Tulsa money manager Fred Russell said Monday's strong stock performance, which moved the share price higher than the buyout offer, leads him to believe that the company may field an even richer offer.

"That tells me that people think it's worth a lot more than $60,” said Russell, CEO of Fredric E.

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