CommScope Rockets on Takeover Talks

CommScope Inc. shares jumped more than 30 percent Monday morning after the company announced it is in talks with The Carlyle Group LLC to take the broadband gear supplier private in a deal valued at almost US$3 billion.

CommScope issued a statement today noting that the potential transaction would involve Carlyle acquiring all of the outstanding shares of CommScope common stock for $31.50 per share in cash, a 36 percent premium over its closing price on Friday ($23.12). CommScope has about 94.7 million outstanding shares. (See CommScope in Buyout Talks.)

Investors reacted Monday morning by sending CommScope shares up 30.32 percent ($7.01), to $30.13 each.

Carlyle obviously sees something about CommScope's business that looks to provide a good return over the next few years. The investment firm says it has put more than $5 billion in telecom and media companies since 1987. Its last cable deal of note occurred when it took Insight Communications Co. Inc. , the ninth-largest incumbent US MSO, private in 2005. (See Private Equity Firms Gain Some Insight and Insight Goes Private, Reports Q2.)

For more on CommScope's recent activities, see:

— Jeff Baumgartner, Site Editor, Light Reading Cable

spc_markl 12/5/2012 | 4:20:28 PM
re: CommScope Rockets on Takeover Talks

It may be perceived as cleaner for a company like Huawei to buy from a private equity firm.  In addition, there would likely be less US government resistance with the purchase of a company that supplies passive products.

Mark Lutkowitz, Telecom Pragmatics

Jeff Baumgartner 12/5/2012 | 4:20:27 PM
re: CommScope Rockets on Takeover Talks

Guessing "broadband stuff" didn't make it through the edit process when they were seeking a catch-all. JB

bmenezes 12/5/2012 | 4:20:27 PM
re: CommScope Rockets on Takeover Talks

You've gotta love Wall Street Journal's description today of CommScope as "a maker of communications cables." One can almost hear the screams of a PR person being flayed over that...

paolo.franzoi 12/5/2012 | 4:20:26 PM
re: CommScope Rockets on Takeover Talks

Replace "cable maker" with "cable, box and antenna maker".


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