source: autosport.com
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.
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.