Alvarion gives up some gains as acquisition news settles

|About: Alvarion Ltd. (ALVR)|By:, SA News Editor

Shares of Alvarion (ALVR -23.9%) are off sharply today after the stock exploded 511% last week. The run came as speculation swirls over a potential acquisition of the Israeli wireless broadband solutions company, which is in receivership.

The deadline for bids was last Thurs. Globes reported that among multiple bids, private Israeli firm Sigma Wave submitted an offer to inject "tens of millions of shekels." The bid is conditioned on acquiring the company as a going concern, bringing employees back to work immediately, and restructuring Alvarion's debt (~$24M).

Current equity holders would also face dilution. Sigma Wave's offer proposes new equity issuances of ALVR stock to employees who stay on board.