Thanks Logi. That's what it sounds like to me too. So I guess this is a done deal by the end of the week. Zero chance of another bid coming now, correct?
My opinion is this: If you don't need the cash and/or see other better opportunities out there, tender your shares. It may be hopeful thinking on my part, But I still think there is a 20% chance that Chinese Party B (or another company) is not out of the picture yet.
Yes, with 4,000 shares I would have likely done the same thing and sold shares on the open market. But with a half million shares, the $38 transaction fee is minimal. Plus with so many shares at stake which i have held for much time, no way I would want to sell on the open market since the remote chance of an unsolicited superior bid still exists, although unlikely at this point I feel. But I am still not convinced that the Chinese company gave up so easily which is why I decided to tender in this case. However, when Cypress bought out Ramtron, another stock I owned a sizable position in, I decided to sell on the open market because the circumstances were different and didn't I think another superior offer would arise, which it didn't. I am still not so convinced with ANAD however.
That depends. If I was 100% sure that another offer would not arise, I would have just sold on the open market to get my money now and not wait for the deal to finalize which could take a couple of months. But should another offer arise, those who sold on the open market would not be able to participate. Since I have held this stock for years, another couple of months is no biggie. Those who tendered their shares would still be able to participate should a better offer surface, so I decided to tender my shares and wait just in case even though I think the odds of another offer arising are almost zero at this point.
I would think that if Pary B or any other party were going to make another unsolicited bid, they would have done so by now. Surprised that this company did not fetch at least $100mil and that Chinese company did not counter with a higher bid. Maybe they were a small company and .85 was the highest they could go. Any any rate, we should grateful that they bid as high as they did. While I still took a loss at .85, certainly not as large as it would have been if sold at .35! All the best to all.
While deadline to tender shares is 3/11, instructions state they must be tendered by tomorrow 3/9 which is the rely date deadline. "Any instructions received after the reply date (3/9) will be processed on a "Best Efforts" basis." (not sure what that means, but it sounds risky). I tendered all of my shares tonight. Should party B come with a superior offer, those who tendered shares would still be eligible to participate. If one sells their shares on the open market, they are done.
I hope Party B does come back with superior bid and ANAD signs a definitive agreement with them. Reason being that after reviewing their projected P&L provided in their latest (2/29) SEC filing, waiting out the 6-12 month CFIUS approval process may not be such a bad thing. I know that it's a BIG IF, but if their projections turn out to be accurate, and should Party be unsuccessful in gaining CFIUS approval, ANAD could still emerge as an EDITA positive company by the end of Q1/17. Again, big IF here based on history, but even if they just show some improvement in their profitability potential 6-12 months down the road, they would be able to demand a higher price for the company should Party B not gain approval, which I don't don't think should be an issue. I know I stated otherwise on a previous post where I would rather take .85 now by an American company than taking the risk of waiting for a Chinese company to go through the CFIUS process for a nickle or dime more bid, I don't think the risks are high (with or without CFIUS approval) especially if the company appears to be approaching break-even by the end of this year. So to those who are speculating that this show is not over and that Party B will emerge with superior offer and actually sign an agreement, I now hope you are right!
Quite honestly, I think I'd rather take the .85 offer from IIVI than a .90 offer from Party B. Pary B was given one last opportunity to counter and thought they would counter with more than .04 over previous offer. Now that the auction has ended, if Pary B (or anyone else) should decide to make another bid, which at this time would be considered hostile, I think they would need to counter with something closer to a buck or more for management & BOD to reconsider. While there is still a possibility this could happen, I don't think it's likely. I think this is pretty much a done deal now, but I'm obviously hoping I'm wrong since I will be taking a $50K loss at .85 .
I doubt it. I think this is a done deal now unless maybe Party B comes back with a bid well over $1.00. I don't think a buck/shr bid by party B at this time would be enough for BOD to change their minds.
That's more than what is currently being offered for ANAD!
I would think that anyone would be able to make an unsolicited bid for the company at anytime before any deal actually closes. The imposed deadline means nothing. If another unsolicited bidder should show up next week with a far superior offer, I don't think management and bod can simply say, sorry, but the bidding deadline has expired. Honestly, I think they would have done better quicker if they had just done an e-Bay style auction! (just kidding, sort of).
Last sentence of PR states: "At the close of this two-business-day period, the auction process in which the Company has been engaged since November 2015 will terminate and the Company's Board of Directors will thereafter evaluate the final proposals received as of that date."
What does that mean? Can party B (or anyone else) still come back at last minute and make a final bid at end of 2-day deadline for IIVI to counter or walk?
While i was hoping that party B would make a high enough bid which IIVI would not match, in a way, I'm glad they didn't in that I think IIVI will match the .85 and being taken over by an American company would certainly be less complicated and close quicker.
+1 to what eric_bedalet said earlier on another thread.
Here is where it may either get interesting, or simply end here.
Anadigics' Management and BOD got a lot of heat on this forum over the past few years, and while I think they waited a bit too long to sell this company, I don't think they or anyone else saw the sharp downturn in Chinese economy coming. Anyway, I think management has done a fantastic job throughout this long bidding process and deserves some credit for executing their fiduciary duties well. I say this even though I will still be losing money if it ends up going for .81. They did a very good job in trying to get the most they could for this company and their shareholders under the circumstances.
As I have said many times before, if this company ends up going for under 100mil, I will be very surprised, and the successful bidder with have gotten a steal!
Now, let's see which part eric got right in his post! :))
"..given the time constraints, $1 is probably off the table.."
That may be, or maybe not. Unless one party folds, the time constraints could also get this to a buck sooner. At this point, ANAD should just put itself on eBay for final few days of bidding. lol
I say the Chinese will not let this one go just yet. The cost of starting a fab is in the billions I hear! I don't see this company selling for less than 90 mil. But even 150 mil would still be a bargain!
Just goes to show how a higher bid alone may not always constitute a superior offer. IIVI knows this which is why they only needed to up their bid a bit without matching. Personally, I'd rather take .73 over .78 as the extra nickle isn't worth the risk or the extra time in gaining CFIUS approval. However a quarter or even a dime more is another story. Party B has already come through with ANAD's terms to protect itself. I therefore anticipate B will raise their .78 bid another nickle minimum, but if they really want to get this deal done, they will need to get closer to a buck. ANAD is the best shot the Chinese have in acquiring a US semi fab with lots of potential and very little risk in gaining approval as has been the case with some of the other bigger players they have been trying to get their hands on with little success. ANAD would not (or should not) pose a threat to national security should a Chinese company take them over.
Look at Pericom and Fairchild. Both had superior offers by Chinese companies and BOD of both companies went with deal by US companies even though price/shr was lower. So there is precedent and I anticipate the same will happen with ANAD. Our only hope at this point is if "B" ups the anti further. I'm thinking they will.