Anadigics Weighs New Bid From Chinese Suitor
Anadigics continues to be quite the object of desire, with an anonymous Chinese company (Party B) making an offer that might trump a bid from II-VI Inc., which Anadigics formally accepted only last week.
Back in November, GaAs Labs put Anadigics Inc. (Nasdaq: ANAD) into play with an offer to buy Anadigics for $0.35 a share, or about $32 million. In December, II-VI Inc. began bidding against GaAs Labs. The two bid and counter-bid, until GaAs Labs dropped its suit after II-VI entered an offer of $0.66 a share. (See Bidding War for Anadigics Continues)
Right about the same time that II-VI entered its bid of $0.66 a share, some anonymous Party B made an offer of $0.75 a share. Anadigics mentioned Party B at the time, but said it still considered II-VI's offer superior.
Anadigics subsequently explained that Party B is a company based in China, "and even though its bid of $0.75 a share exceeded II-VI's in terms of cash value, [it] fails to incorporate certain key terms and conditions demanded by the Board of Directors for the protection of the Company and its stockholders. Because Party B is a Chinese company, the closing of Party B's proposed acquisition of the Company would potentially be subject to delay caused by, among other things, the review and clearance process to be undertaken by the Committee on Foreign Investment in the United States."
Anadigics formally accepted II-VI's offer last week, but Party B threw a spanner into the works with a revised offer of $0.76 a share, a bid accompanied by at least some of the assurances sought by Anadigics' management and board.
Anadigics said it has a deadline of January 29 to review the new offer.
— Brian Santo, Senior Editor, Components, T&M, Light Reading