Rocket Fuel Says Gravity4's Buyout Bid Is 'not Credible'

Rocket Fuel Inc. said in a statement Wednesday it has determined that the unsolicited buyout proposal from Gravity4 "is not credible." In a letter to Gravity4 founder and chief executive Gurbaksh Chahal, Rocket Fuel Interim Chief Executive Monte Zweben wrote: "Our board of directors has evaluated your proposal in consultation with its independent advisors and concluded that the highly conditional and non-customary nature of your proposal does not constitute a credible offer." Rocket Fuel's stock had run up 9% on May 8 after the marketing technology company confirmed it received a buyout bid from Gravity4 for $350 million in cash. Rocket Fuel's stock, which is still inactive in premarket trade, has tumbled 43% year to date, while the S&P 500 has gained 2%.