A little-known Chicago real estate developer said Tuesday he owns a 5.5 percent stake in west suburban Oak Brook-based L.E. Myers Co. Group and may move to buy the financially troubled company.
In a telephone interview, Leonard Chavin said Myers management hasn`t responded to his proposal to acquire the company in a leveraged buyout. Chavin said he made the offer in a meeting last month with Leo A. Grant, Myers`
president and chief executive officer, and Elliott C. Robbins, senior vice president and chief financial officer.
Robbins refused to comment.
In a filing with the Securities and Exchange Commission, Chavin said he has talked to investment bankers about obtaining financing to buy Myers, but he hasn`t yet received a commitment. The SEC filing said Chavin needs financing to acquire control.
Chavin said he owns 125,000 common shares of Myers, including 88,400 shares he purchased since Oct. 8 at prices ranging from $3.75 to $5.50 a share.
Chavin said he bought the holdings because he considered Myers
”considerably undervalued.” He said he began buying the stock 8 or 9 months ago and intends to purchase more.
”I think it`s a turnaround situation,” he said.
Chavin, 55, said he is a real estate broker, a developer of mostly commercial real estate and the owner of Howard`s Style Shop, a clothing store at 1259 S. Halsted St., and Carpet Corner, a furniture store at 4555 S. Ashland Ave.
Last February, Myers restructured its bank debt after the callapse of a plan by an outside investor group to buy a controlling interest in the company.
In the first nine months of 1986, Myers` loss narrowed to $4.7 million from $15 million a year earlier, despite a 52.6 percent drop in revenue.
