Big O Tires Investor Explores Acquisition
NEWPORT BEACH — Kenneth Pavia, who holds a 9.2% stake in Big O Tires Inc., said Monday he has entered talks with a management-dealer group that has been trying to acquire the tire and automotive service franchise chain and possibly take it private.
In a filing with the Securities and Exchange Commission, Pavia said he intends to discuss the possibility of selling the shares he holds in connection with a possible acquisition of the company.
Pavia said he indirectly holds 309,500 Big O Tires common shares as sole general partner of Balboa Investment Group L.P. in Newport Beach.
In the SEC filing, Pavia said that such a sale, if any, would be for cash, securities or some combination and would be on terms and conditions agreed on by the parties.
He said it is anticipated that any such sale would be contingent on completion of the acquisition of the company.
Last month, a group led by Chief Executive Steven Cloward dropped a $62-million plan to acquire Big O Tires. It had offered to take the company private at $18.50 a share.
In Monday’s Nasdaq trading, Big O Tires’ stock closed at $13.875 a share, down 50 cents.
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