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Posted By: bruce Dorskind

HOSTILE BID FOR TOPPS


June 26, 2007 -- Sports card maker Upper Deck launched a hostile tender offer for rival Topps last night that threatens to throw cold water on a $385 million takeover of the iconic company by former Disney boss Michael Eisner.
Upper Deck said yesterday that it will offer Topps shareholders $10.75 for each share in an offer that expires on July 24. That offer beats the current $9.75 per share deal that Topps reached with Eisner's Tornante Co. and buyout firm Madison Dearborn Partners back in March.
Topps' board had said a bid from Upper Deck, which tried to submit a friendly offer to the company in April, was too conditional on financing and antitrust issues to go forward.
Upper Deck then sued and won a lawsuit against Topps, the owner of Bazooka Joe, to get out of a confidentiality agreement that prevented it from launching a tender offer. Topps then postponed a shareholder meeting scheduled for June 28 to vote on the Eisner deal.
The deal with Eisner has caused several large Topps shareholders, who also have representatives on the company's board, to launch a proxy contest against the other directors, who they have dubbed "the seven dwarfs."
Eisner, who sources say miscalculated Upper Deck's seriousness about acquiring Topps, now has to raise his offer or walk away from the deal.
In addition, to baseball cards, Topps makes bubble gum and other collectibles.