OWRS presses on with CART acquisition.

The proposed takeover of Championship Auto Racing Teams Inc [CART] by Open Wheel Racing Series LLC continues on track, after the latter allowed the 18 September deadline for backing to pass by.

OWRS has agreed to acquire CART for cash equivalent to $0.56 per share, based on the number of shares of CART common stock currently outstanding. Under the agreement, OWRS had the right to terminate on or prior to Thursday 18 September, but decided not to exercise this right, allowing the two parties to continue to pursue the completion of the deal in accordance with its remaining terms. The transaction is still subject to various closing conditions set out in the definitive agreement, which CART has since filed with the Securities and Exchange Commission.

Under the agreement, the CART board retains the ability to pursue and accept a superior acquisition proposal. However, OWRS - the holding company owned indirectly by a group of investors including CART team bosses Gerald Forsythe, Kevin Kalkhoven and Paul Gentilozzi - is entitled to receive a termination fee of $350,000 if such an offer is accepted, or if OWRS terminates because CART withdraws or adversely modifies its recommendation to stockholders.