Zeev...saw this buyout news on TRRA and at 4.55 +.44 it seems to be underpriced given the 2 for 9 share swap + there is mention of an .80 dividend prior to the deal??? Confusing to me but looks to me like TRRA would be underpriced at this level based on the PR...if you get time could you comment please: Associated Press
Terra Agrees to Telefonica Buyout
Wednesday February 23, 11:59 am ET
Terra Networks Agrees to Be Bought Out by Parent Company Telefonica
MADRID, Spain (AP) -- Spanish Internet company Terra Networks SA said Wednesday its board of directors has accepted a buyout offer from parent company Telefonica SA.
Telefonica, which already owned 76 percent of Terra, is proposing a swap of two of its own shares for nine Terra shares.
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Terra said in a joint regulatory filing that, prior to the completion of the buyout process, Terra will pay a dividend of 60 euro cents (80 cents) a share.
The buyout is a "strategic must and a great opportunity" for the company, it said.
Telefonica said it doesn't rule out a capital increase to meet the terms of the proposal.
Terra, currently valued at 1.9 billion euros ($2.5 billion), was founded by Telefonica in 1998 but it has never posted an annual net profit.
Telefonica sold Terra shares at 11.81 euros apiece in its November 1999 initial public offering, and the stock price hit a high of nearly 160 euros in the dot-com boom, before collapsing.
Thanks...tuna
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