Covad Communications Snapped Up
Source: www.voip-news.com
When I say “snapped up,” it makes it sound like a bargain bin find, but let’s face it, when it comes to buying companies, I’m not sure there’s a bargain to be found, unless they’re in dire straits. That being said, the Covad Communications Group, Inc., a well-known provider of voice and data communications, recently announced that they are going to be acquired by an affiliate of Platinum Equity in an all-cash deal. I love it when they say “all cash,” because I immediately envision a briefcase stuffed to the gills with the cold, hard stuff, when that obviously isn’t the case. Still, it’s fun to imagine!
Covad will be acquired for $1.02 a share, which represents a “59 percent premium to the closing price of Covad’s shares on October 26th, 2007,” so says their recent press release.
“After a careful and extensive review of our strategic alternatives, our Board of Directors has determined that the substantial premium to the current market price provided by this transaction offers the best value for our stockholders,” said Charles Hoffman, Covad President and CEO. “Furthermore, Platinum’s approach will bolster the successful execution of Covad’s business strategy while providing the resources and support necessary for sustained growth. We believe that the resulting increased market competitiveness, improved capital structure, and enhanced product and network capabilities best position our customers, partners, and employees for the future.”
