Quantum Expects Acquisition of ADIC to Be Completed on August 22 Thursday August 17, 8:00 am ET
SAN JOSE, Calif., Aug. 17 /PRNewswire-FirstCall/ -- Quantum Corp. (NYSE: DSS - News), a global leader in storage, today announced that it expects to complete the acquisition of Advanced Digital Information Corp. (Nasdaq: ADIC - News) on Tuesday, Aug. 22, 2006, pending approval by ADIC shareholders at a special meeting on Friday, Aug. 18 ----------------------
Note: " ADIC shareholders not making a stock election will receive $12.25 per ADIC share in cash upon close."
Thank ypu bpth for the info. Another question: does this seem like a reverse takeover with a co. with a $2 stock buying a co. with a $12 stock? Does the decline in DSS portend anything about the closing of the deal ir just the ongoing value of the bus.?
You should be looking at market capitalization (i.e., number of shares outstanding times share price) and not just look at the stock price. If stock price were indeed the key, we would say that Berkshire Hathaway is the world's largest company and that GE, Exxon and Microsoft are all smaller companies (even though they have higher market capitalization).
Or TRMP is a bigger company that ORCL which we know is not true.
In my experience corporate -vs. LBO or MGT BOut- buyers always close. Financing is not even a factor. Yeah, its in the prospectus because the lawyers put it there. But strategic reasons, ego, momentum and 'synergy' trump legal.
Its not like they have to sell billions of CC- junk. Its a bank line, which is a very competitive business. Everyone offers em either to get business or keep it. My 2c. Quant.
Ace, from the OCC memo on this, cash is the payout, and you can elect stock if you wish but you have to proactively ask for it. "� Register no preference by not electing to receive the Stock Consideration (�Non- Election�). Non-elections will not be subject to proration." Link to whole doc: http://www.theocc.com/market/infomemos/2006/aug/21991.pdf Regards, Quant.