Wells Fargo Comments on Nuance (NUAN) As Likely Other Bidder for M*Modal (MODL)
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Up: 11 | Down: 18 | New: 13
Rating Summary:
6 Buy, 8 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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Wells Fargo maintains a 'Market Perform' on Nuance Communications (NASDAQ: NUAN).
Analyst, Gray Powell, reviewed M*Modal's (Nasdaq: MODL) 14-D filing which highlighted the fact that another company was bidding for MODL (One Private Equity was announced the acquirer for $14/share). Powell said Nuance was the other likely bidder, because in the filing, MODL said the bid came from a company who acquired a competitor on 3/7/12 (and in fact NUAN acquired Transcend on 3/7).
Powell reported that 'Party A' or Nuance's peak bid was $17/share with a large break up fee. The Wells Fargo analyst feels that MODL didn't follow through with the higher offer because of anti-trust issues, since the combined NUAN/MODL would have had about 28% market share vs. the next largest entity with only 2%.
In conclusion, Powell said its clear the NUAN wants to expand in the healthcare segment, but probably won't start a bidding war with One Equity Partners.
For an analyst ratings summary and ratings history on Nuance Communications click here. For more ratings news on Nuance Communications click here.
Shares of Nuance Communications closed at $21.22 yesterday, with a 52 week range of $15.56-$31.15.
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Analyst, Gray Powell, reviewed M*Modal's (Nasdaq: MODL) 14-D filing which highlighted the fact that another company was bidding for MODL (One Private Equity was announced the acquirer for $14/share). Powell said Nuance was the other likely bidder, because in the filing, MODL said the bid came from a company who acquired a competitor on 3/7/12 (and in fact NUAN acquired Transcend on 3/7).
Powell reported that 'Party A' or Nuance's peak bid was $17/share with a large break up fee. The Wells Fargo analyst feels that MODL didn't follow through with the higher offer because of anti-trust issues, since the combined NUAN/MODL would have had about 28% market share vs. the next largest entity with only 2%.
In conclusion, Powell said its clear the NUAN wants to expand in the healthcare segment, but probably won't start a bidding war with One Equity Partners.
For an analyst ratings summary and ratings history on Nuance Communications click here. For more ratings news on Nuance Communications click here.
Shares of Nuance Communications closed at $21.22 yesterday, with a 52 week range of $15.56-$31.15.
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