Trilogy to Acquire Autobytel?Trilogy to Acquire Autobytel?

Is the end near for Autobytel?

In what best can be described as a hostile takeover attempt, Trilogy Enterprises today made an cash tender offer of 35 cents per share to Autobytel's board of directors.

The offer represents a 32% premium over the trailing 30-day average closing price of Autobytel’s common stock. The stock jumped more than 10 cents following Trilogy's offer, which indicates a selling price likely will be somewhat higher than 35 cents.

Trilogy is Autobytel's second largest stock holder. Sean Fallon, senior vice president for Trilogy says, "We have concluded that Autobytel's ability to execute a turnaround and realize significant value for its stockholders is subject to significant and unacceptable risk. We believe that a high-premium, all-cash tender offer is the most effective way to maximize value for all stockholders. As a result, we have determined it is necessary to take the offer directly to our fellow stockholders in order to deliver significant value to them as expeditiously as possible."

You can read the letter to the board of directors here.

It's likely this situation could get ugly for Autobytel.

Trilogy hopes to leverage the relationship Autobytel has with dealers and manufacturers while adding to the trough of leads it scores. Trilogy developed a lead scoring tool last fall that more than 300 dealerships (not counting AutoNation stores) are using for free. The Austin, TX-based firm has already scored more than 5 million leads and believes acquiring Autobytel and its leads will help it develop more predictive solutions.