Turin to Buy Carrier Access
Turin has agreed to pay $2.60 for each Carrier Access Corp. (Nasdaq: CACS) share, slightly more than Friday's closing price of $2.50.
That's way less than some had expected. Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) was linked with a potential $7-per-share bid earlier this year, while Huawei Technologies Co. Ltd. was rumored to have made an approach worth $6.35 per share. (See Tellabs Close to Carrier Access Buy and Huawei M&A Rumor.)
Carrier Access's share price duly reacted this morning, rising 10 cents, or 4 percent, to match Turin's offer of $2.60.
That's still way short of the stock's 52-week high of $6.80, reached in late 2006. Since then, though, the vendor's stock has been on a downward slide.
Turin says the price represents a near 15 percent premium over the $2.27 average price of Carrier Access stock in the 20 days up to December 14. The offer might still be adjusted if Carrier Access has less than $63 million of cash in the bank when the deal closes. The acquisition, which has been approved by the boards of both companies, is expected to close in the first quarter of 2008.
Carrier Access, which has more than 100 operator and enterprise customers using its backhaul and access gear, reported a net loss of $11.8 million from revenues of $7.4 million in its most recently reported quarter. (See CACS Reports Q3.)
We'll report more on this deal as the day progresses.
— Ray Le Maistre, International News Editor, Light Reading