1(858) 458-3044
spiri@paulhastings.com
March 14, 2011 |
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76942.00010 |
VIA EDGAR AS CORRESP AND FACSIMILE
United States Securities and Exchange Commission
Division of Corporation Finance
100 F Street N.E.
Washington, DC 20549-3628
Attn: Daniel F. Duchovny, Esq.
Fascimile: (202) 772-9203
Re: Herley Industries, Inc.
Amended Schedule TO-T filed March 8, 2011 by Lanza Acquisition Co. and Kratos Defense & Security Solutions, Inc.
SEC File No. 005-34884
Dear Mr. Duchovny:
On behalf of our clients, Kratos Defense & Security Solutions, Inc. and Lanza Acquisition Co. (collectively, the Bidders and each, a Bidder), we are transmitting to you this letter in response to comments received from the staff (the Staff) of the Securities and Exchange Commission (the Commission), by letter dated March 10, 2011, with respect to the Amended Tender Offer Statement on Schedule TO and the related amendments and supplements to the Offer to Purchase (together with any amendments and supplements thereto, the Offer to Purchase) set forth in such Amended Tender Offer Statement on Schedule TO, filed with the Commission on March 8, 2011.
The numbering of the paragraphs below corresponds to the numbering of the comments, which, for the Staffs convenience, have been incorporated into this response letter.
Offer to Purchase
Cover Page
1. We note your response to prior comment 1. Please revise your disclosure further to clarify that the determination of whether the minimum tender condition has been satisfied will be the expiration date of the offer.
In response to the Staffs request, the Bidders have revised the Offer to Purchase to address the Staffs concern in the third paragraph to the cover page, as well as in the paragraph under the subsection captioned What is the Minimum Condition to the Offer? in the Summary Term Sheet of the Offer to Purchase and the fourth paragraph of the Introduction to the Offer to Purchase.
Summary Term Sheet, page 1
2. We note your revisions in response to prior comment 2. It appears that given the number of shares available to be issued pursuant to the Top-Up Option, the bidders will need to receive tenders of approximately 12% of the fully diluted shares above the minimum tender condition amount before the exercise of the Top-Up Option would result in the bidders ownership of 90% of more of the companys shares. Please revise you disclosure to clarify.
In response to the Staffs request, the Bidders have revised the Offer to Purchase to clarify that the Bidders will need to receive tenders of approximately 87% of the fully diluted shares before the exercise of the Top-Up Option would result in the Bidders ownership of 90% or more of the companys shares, in the paragraph under the subsection captioned What is the Top-Up Option and when could it be exercised? in the Summary Term Sheet of the Offer to Purchase, as well as in the sixth paragraph of the Introduction to the Offer to Purchase, the subsection captioned Short-Form Merger. of Section 12 Purpose of the Offer; Plans for Herley; Other Matters of the Offer to Purchase and the first paragraph of the subsection captioned Merger Agreement. - Top-Up Option. of Section 13 The Merger Agreement; Other Agreements of the Offer to Purchase.
Closing Comments
Please do not hesitate to call me at (858) 458-3044 if you have any questions or would like any additional information regarding this matter.
Sincerely,
/s/ Deyan P. Spiridonov |
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Deyan P. Spiridonov |
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of PAUL, HASTINGS, JANOFSKY & WALKER LLP |
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DPS
cc: |
Eric M. DeMarco (Kratos Defense & Security Solutions, Inc. and Lanza |
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Acquisition Co.) |
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Deanna H. Lund (Kratos Defense & Security Solutions, Inc. and Lanza |
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Acquisition Co.) |
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Lawrence A. Gross (Blank Rome LLP) |
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Francis E. Dehel (Blank Rome LLP) |
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Teri OBrien (Paul, Hastings, Janofsky & Walker LLP) |