Acquisition of Manischewitz Falls Through

After twice receiving extra time to evaluate its proposed purchase of B. Manischewitz Co., Levine, Tessler, Leichtman & Co. said Monday that it will not proceed with the $44.6-million acquisition of the kosher food maker.

From its Jersey City, N.J., offices, Manischewitz accused the Beverly Hills-based investment firm of dragging its feet on the deal and said it will not submit Levine’s $841-per-share offer to shareholders for a vote.

But Levine cited Manischewitz’s alleged unwillingness to disclose additional information concerning the impact on the company of a federal grand jury investigation of alleged antitrust violations in the kosher food industry. Levine claims that Manischewitz now must pay a cancellation fee of $2.4 million.

Disclosure Dispute

Both firms, however, have negotiated a two-day truce during which neither party will pursue litigation.

Arthur E. Levine, chairman of the 2-year-old private investment firm that has been pursuing Manischewitz, had called the company “an excellent brand name” after signing a purchase agreement with Manischewitz on July 5. Manischewitz agreed to be acquired by Levine after rejecting a $43.3-million offer from National Foods, a rival kosher products firm.

Neither Levine nor Manischewitz would permit its executives to comment on the dispute. But the deal apparently unraveled on Thursday, shortly after Manischewitz granted Levine a second four-day extension to complete the acquisition.