Marvell Technology Inc (MRVL)

[cbs13]

Let me clarify on LBO talk:

I don't think MRVL is an LBO target - for many reasons stated on this board including S2.

I believe MRVL is a takeover candidate. For the record, I posted several months ago that 6-12 months after MRVL filed full finl's they could be taken over.

Now if I was the acquirer, I would let MRVL lay-off their workforce - remember I'm looking for 15-20% cut back TBA in August, then make my run at them.

As the acquirer - I realize the potential in the company and how it could be accretive to my company's earnings. It is better to do it sooner than later.

As to Sehat and family, offer than positions at the new company for loads of stock options going forward.

That plus the pressure MRVL would recieve from shareholders, specifically institutions and fund mgrs. the deal would get done.

Look at the DJ situation currently on-going - the co is closely held by the family, but it is just a matter of time before they agree with NWS or another co. taken a minority stake in them.

Bottom line - once an offer is made to a company at a large premium to where the stock is trading it is tough for a co. to turn it down because they have a fiducary responsiblity to shareholders. If an offer is turned aside, the co. would have to justify it some other way, because remember the stock px will have jumped.

In MRVL case they would be forced into doing something, they do not have assets to sell or enough cash (they a not in bad shape, read on) to do a special cash distribution to shareholders or large buyback.

Another words they are forced into it whether they like it or not. This is the life of a public company.