As it turns out, those rumors had a good news/bad news aspect to them. While Dell's bid for Compellent did in fact materialize, it was at a price that was significantly below the going rate for Compellent shares. (For more, see The Wacky World Of Mergers And Acquisitions.)
An Odd Path to a Deal
This deal followed a road a little less traveled than the norm. Most likely in response to chatter about a deal, Dell and Compellent issued a press release last week indicating that they were in serious talks about a deal ... and that the deal would be an all-cash transaction with a price at or around $27.50 per share.
Not only was it rare to see that sort of "we think we have a deal, and here's the deal, but it's not a deal ...yet" sort of release, but it was rare to see a bid that was pretty substantially below the going rate for the stock - especially in today's hot tech M&A market. Oddly enough, there does not seem to be a "go shop" opportunity as part of the deal (or at least not one highlighted in the companies' press release). It has become de rigeur for certain law firms to file nuisance suits in the wake of announced deals claiming that the selling company hosed its investors by selling too cheaply, and this sort of deal would seem to be asking for that kind of headache.
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