OK - so I was thinking last night that the reason that the CFO and CEO quit was because they know what is going to happen. If CVG was going to get bought out for cash, they would have stuck around. I think that they are going to merge with a company that cannot afford to buy them for cash (maybe Amdocs). If it was a stock deal as I suspect, there is no reason for them to stick around - more than likely the Amdocs people would run the company. Unfortunately, this may mean that the takeout price is not has high, but a lot of the things that a private equity company would have done have already been done. So in a commoditized industry, scale is the only thing that matters. I could see where they merge and the combined CVG/DOX pays a small dividend and buys back stock. So I am looking for CVG to get an all stock offer, and my bet is Amdocs. Not as good as what I was hoping for but I would take it happily. Should still cause a nice pop.
Interesting. I think, however, that this will be a private equity takeover, just like APAC Customer Services, Inc. last summer. The CEO that has been overseeing selling off the superfluous divisions is going to be an active chairman--actively working to sell the company while the new CEO focuses on operations.