SPLP - Steel Connect sinks after Steel Partners parent nixes merger deal

Steel Connect ( NASDAQ: STCN ) -10.2% post-market Tuesday after Steel Partners ( NYSE: SPLP ) terminated the merger deal between the two companies after a majority of the parent's outstanding shares failed to approve the agreement; no additional explanation was provided.

Under the original deal terms , Steel Connect shareholders would have received $1.35/share in cash and one contingent value right to receive their pro rata share of net proceeds, to the extent such net proceeds exceeded $80M plus certain related costs and expenses, if the company's ModusLink subsidiary was sold during the two years following completion of the merger.

Last week, Steel Partners ( SPLP ) reported Q3 GAAP earnings of $1.45/share on revenues of $425M .

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