Multiband Corporation Message Board

  • b_fr_nk b_fr_nk Jan 30, 2012 4:16 PM Flag

    Deal in doubt...

    http://www.bizjournals.com/twincities/news/2012/01/30/multibands-deal-to-buy-wpcs-doubtful.html

    CEO James Mandel said the New Hope-based company would release a statement Tuesday about its pending purchase of WPCS International Inc.

    Mandel made his comment Monday after a reporter for the Philadelphia Business Journal expressed doubt that Multiband's $22 million deal would go through by Wednesday's deadline.

    "I can't give you anything ahead of the marketplace, good or bad," Mandel told the Minneapolis/St. Paul Business Journal.

    Mandel really appears to have blown this one.

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    • How did MBND blow this one? It would seem a good thing that they did not pay 3.20 for the entire company that is now valued at 50% of such value. They bought two subsidiaries and reduced the escrow to just $250K if they walk away now from the original $2MM.

      I still think a renegotiated price is possible, but it would not surprise me if both companies shares went higher once the status of this deal is announced tomorrow. MBND has an overhang that it might still pay 3.20 and need to finance it. Either buy WPCS for a lower price or move forward elsewhere. Company has plenty of cash flow and ebitda.

 
MBND
3.200.00(+0.00%)May 24 4:00 PMEDT