March 9, 2005
Omaha, Neb.—InfoUSA said Tuesday that Digital Impact’s board was not acting in shareholders’ best interest when it recommended they reject infoUSA’s offer to acquire the company.
"InfoUSA believes that the Digital Impact board is not seriously committed to realizing stockholder value as demonstrated by their continuing refusal to engage in discussions regarding our proposal," Vin Gupta, chairman-CEO of infoUSA, said in a statement.
Gupta also stated he is disappointed about Digital Impact’s decision to adopt a "poison pill" and accused management of "lining its own pockets at the expense of the company’s stockholders."
"A standalone model for Digital Impact at this point is doomed to continued mediocrity due to intense competitive pressure and excessive costs involved in staying public for a small company the size of Digital Impact," Gupta said.