- Shares of Alvarion (ALVR -16.9%) plunged after the company's Receiver submitted a motion on Sunday requesting court approval of a $3.3M bid ($1.5M plus a guaranteed $1.8M in milestone payments) by Valley Telecom. Additional payments above the minimum are contingent on sale of existing inventory and collection of accounts receivable.
- In addition, Valley Telecom's bid includes a $0.5M payment for newly-issued shares that would represent 75% of outstanding common shares. Existing holders would be diluted to 10%. A previous offer made made by Sigma Wave was much more favorable to equity holders.
- The Receiver believes the offer will enable repayment of half of Alvarion's estimated $23M in debt and is superior to the 3 other bids made. The Court has the option to approve the bid or schedule an emergency hearing by Aug. 29.
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