Friends of Essex

[dontbothermec]

That article about Essex being pricey has interested me enough to do some research on two other stocks that I follow which have been recently taken-over.

DJO take-over premium 8% @ $1.3B, rev. was $445M, profit was $246M....so the author would consider this a pricey takeover as well. (5.28 X profit)

TONS takeover premium 13% @ $585M, rev was $815M, profit was $185M (3.16 X profit)....of course TONS hardly had any investors to protest.

My opinion on such scanty research is that there is no formula, it is whatever they can get by with. Both stocks (as did KEYW)had a big decline prior to announcement of the takeover:
http://finance.yahoo.com/q/bc?s=TONS&t=1y
http://finance.yahoo.com/q/bc?t=1y&l=on&z=m&q=l&p=&a=&c=&s=djo

It's really too bad that the stats are no longer available for other takeovers like LSS, KEYW, & HYDL.