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DigitalGlobe Turns Down GeoEye $792M Takeover Bid; Jeffrey Tarr Comments

DigitalGlobe Inc. (NYSE: DGI) has turned down GeoEye Inc.’s (NASDAQ: GEOY) acquisition offer of approximately $792 million in cash and stock, or $17 per share.

In a Sunday announcement, DigitalGlobe, a producer of earth imagery, said its board of directors felt GeoEye undervalued DigitalGlobe and its financial and operating performance.

DigitalGlobe said it has rejected previous buyout offers from GeoEye and itself made offers in March and April to acquire GeoEye in an all-stock transaction.

After rejecting GeoEye’s most recent offer on Friday, DigitalGlobe made a counter offer on those same terms, which was also turned down.

That deal would have resulted in a combined company with DigitalGlobe stockholders would owning 60 percent of shares and GeoEye stockholders’ holding 40 percent.

DigitalGlobe will wait for the government’s budget decision regarding the EnhancedView program before considering whether to propose to acquire GeoEye, said DigitalGlobe CEO Jeffrey Tarr.

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