Shareholders: Thanks For the Offer, But We Want More
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In a sign of the times in the world of M&A, shareholders of companies that find themselves the targets of takeover bids are often times pooh poohing initial bids on hopes of sweeter offers.
The trend is easy to see by tracking the negative arbitrage spreads on a number of recently announced deals at StreetInsider.com's M&A Central.
Recent deals with current market prices above the takeover offer:
The phenomenon is being seen as large companies are willing to pay up for growth in the current economic malaise. Also multiple bidders are coming to the table. Expect the trend to continue in the favor of shareholders of takeover targets.
The trend is easy to see by tracking the negative arbitrage spreads on a number of recently announced deals at StreetInsider.com's M&A Central.
Recent deals with current market prices above the takeover offer:
- 8/30: Cogent (Nasdaq: COGT) agreed to be acquired 3M (NYSE: MMM) for $10.50 per share in cash. The current market price is $10.70.
- 8/29: Genzume (Nasdaq: GENZ) received a $69 per share hostile takeover offer from Sanofi-Aventis (NYSE: SNY), which the company rejected. The current market price is $70.14
- 8/17: Phoenix Tech (Nasdaq: PTEC) agreed to be acquired by Marlin Equity for $3.85 per share. The current market price is $4.16 after the company said it received a higher offer from an unnamed suitor.
- 8/17: PotashCorp (NYSE: POT) received a $130 per share cash hostile takeover offer from BHP Billiton (NYSE: BHP), which the company rejected. The current market price is $147.23.
- 8/16: ICx Tech (Nasdaq: ICXT) agreed to be acquired by FLIR Systems, Inc. (Nasdaq: FLIR) for $7.55 per share in cash. Shares are currently trading at $7.64.
- 8/16: Prospect Medical (NYSE: PZZ) agreed to be acquired by Leonard Green & Partners for $8.50 per share in cash. The current market price is $8.58.
- 8/16: 3Par (NYSE: PAR) is the subject of a bidding war between HP (NYSE: HP) and Dell (Nasdaq: DELL). The current high-bid from HP is $30. The current market price is $31.34.
The phenomenon is being seen as large companies are willing to pay up for growth in the current economic malaise. Also multiple bidders are coming to the table. Expect the trend to continue in the favor of shareholders of takeover targets.
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