Needham & Company Downgrades Comverge (COMV) to Hold; Definitive Agreement to Be Acquired by H.I.G. Capital
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Price: $1.74 --0%
Rating Summary:
0 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 8
Rating Summary:
0 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 8
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Needham & Company downgraded Comverge (NASDAQ: COMV) from Buy to Hold.
Analyst, Sean K. F. Hannan, said, "COMV announced it has entered into an agreement to be acquired by Peak Merger Corp., an affiliate of H.I.G. Capital, LLC, for $1.75/share ($49M) in cash (a 2% discount to 3/23 close, but an 18% premium to its 30-day avg). H.I.G. will also provide $12M in debt financing (not contingent on the acquisition closing) for COMV to continue operations. Behind the deal (which we see as a low-ball), we believe COMV had greater difficulties obtaining needed financing than we previously suspected. We note that a second buyer could materialize during a 30-day (+10day extension) “go-shop” period, but we expect the emergence of such a buyer (and price) would be purely speculative. Thus, with an effective floor now established and upside potential to the stock (from another bidder) unclear, we downgrade to Hold."
For an analyst ratings summary and ratings history on Comverge click here. For more ratings news on Comverge click here.
Shares of Comverge closed at $1.79 yesterday.
Analyst, Sean K. F. Hannan, said, "COMV announced it has entered into an agreement to be acquired by Peak Merger Corp., an affiliate of H.I.G. Capital, LLC, for $1.75/share ($49M) in cash (a 2% discount to 3/23 close, but an 18% premium to its 30-day avg). H.I.G. will also provide $12M in debt financing (not contingent on the acquisition closing) for COMV to continue operations. Behind the deal (which we see as a low-ball), we believe COMV had greater difficulties obtaining needed financing than we previously suspected. We note that a second buyer could materialize during a 30-day (+10day extension) “go-shop” period, but we expect the emergence of such a buyer (and price) would be purely speculative. Thus, with an effective floor now established and upside potential to the stock (from another bidder) unclear, we downgrade to Hold."
For an analyst ratings summary and ratings history on Comverge click here. For more ratings news on Comverge click here.
Shares of Comverge closed at $1.79 yesterday.
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