Bandag declares what may be its last dividend
For the third consecutive quarter, Bandag Inc.'s board of directors declared a quarterly dividend of 34 cents per share on its common stock and Class A common stock.
The dividend is payable July 20, 2007, to shareholders of record at the close of business on June 20, 2007.
Bandag posted net earnings of $14.9 million on consolidated net sales of $227 million for the first quarter ended March 31, 2007. That compares to earnings of $5.7 million on sales of $212.4 million for the same period the previous year.
On Dec. 5, 2006, Bandag announced that it had entered into a definitive merger agreement with Bridgestone Americas Holding Inc. If the merger goes through, Bridgestone will acquire the outstanding shares of each class of Bandag stock of Bandag for $50.75 per share in cash, and Bandag will become a wholly-owned subsidiary of Bridgestone Americas.
The transaction is expected to be completed by the end of the second quarter of 2007.
If the merger is consummated prior to the record date of June 20, 2007, in accordance with the terms of the merger agreement, the quarterly dividend will not be paid to shareholders.