Terayon share price skyrockets on acquisition rumors
“Light Reading” cites industry sources as saying, “The winner could pay as much as $250 million for Terayon, at up to $3 per share.”
Shiri Habib 18 Feb 07 15:57
Terayon Communication Systems Inc. (Pink Sheets: TERN.PK) rose 16% on Friday on rumors of a pending takeover. “Light Reading” reported, “Motorola Inc. (NYSE: MOT) is generally considered the favorite to win the prize” in a three-way race with Cisco Systems Inc. (Nasdaq: CSCO) and Harmonic Inc. (Nasdaq: HLIT).
“Light Reading” said that Terayon declined to comment on reports of a pending takeover.
Terayon, a developer of broadband access solutions for homes and digital video applications, was founded by chairman Zaki Rakib and his brother, Shlomo, a company director, in 1993. Both men still own shares in the company.
“Light Reading” cites industry sources as saying, “The winner could pay as much as $250 million for Terayon, based on a valuation of up to $3 per outstanding share. That price could conceivably go even higher if a new bidding war erupts and the suitors decide to up the ante.”
Terayon is currently traded at $2.10 per share, which means a takeover is being suggested at a premium of 44% of the company’s market price.
“Light Reading” adds, “A fourth would-be suitor, Arris Group Inc. (Nasdaq: ARRS), has dropped out of the Terayon bidding contest after snatching a much larger catch, Tandberg Television ASA (OFX:TAT), from the clutches of such rivals as Motorola… for $1.2 billion.”
Tandberg is a rival of Israeli companies Optibase Ltd. (Nasdaq: OBAS) and Scopus Video Networks Ltd. (Nasdaq:SCOP).
Published by Globes [online], Israel business news - www.globes.co.il - on February 18, 2007 http://www.globes.co.il/serveen/globes/DocView.asp?did=1000184092