Anaheim’s Multi-Fineline Electronix Inc., a maker of flexible printed circuit boards used in flip phones and other devices, is off the hook for an unwanted deal with sister company MFS Technology Inc.
A drawn-out battle with Singapore parent WBL Corp. came to a close Tuesday when shareholders voted not to combine Multi-Fineline with Singapore circuit board maker MFS Technology Inc. WBL owns a majority in both companies.
Shares of Multi-Fineline, also known as M-Flex, jumped more than 5% on the news.
The news wraps up what’s been a big issue for M-Flex. WBL originally proposed the deal a year ago. M-Flex initially complied, offering $500 million for MFS. It came out against the deal when MFS reported slower-than-expected sales and a steep loss last year, and M-Flex hit its own rough patch.
The company had even gone so far as to sue WBL last year in an effort to stop the deal. Despite its efforts, M-Flex still went through the motions of filing the required paperwork to buy MFS with the Securities and Exchange Commission.
At the same time, it vocally urged shareholders to vote against it.
M-Flex’s stock has been in a slump lately, largely on weak sales from its top customer, Motorola Inc.
Motorola accounts for about 70% of M-Flex’s sales.
A deal with MFS would have brought another Motorola-dependent business into the fold.
