Seeking Alpha

More on Apple/AuthenTec: Along with the acquisition, Apple (AAPL) is signing a $20M technology...

More on Apple/AuthenTec: Along with the acquisition, Apple (AAPL) is signing a $20M technology licensing agreement with AuthenTec (AUTH), and a $7.5M engineering services deal. Those are signs Apple wants to integrate AuthenTec's technology ASAP. Apple is showing its typical secrecy: there's no PR explaining its plans. In addition to its fingerprint sensors, Apple may be interested in AuthenTec's mobile VPN software, which has been licensed by Samsung for use in its Android phones.
Comments (6)
  • abhansali
    , contributor
    Comments (9) | Send Message
     
    Would Samsung like to jump in and try to grab Authen Tec?
    27 Jul 2012, 09:46 AM Reply Like
  • mwatt812
    , contributor
    Comment (1) | Send Message
     
    does authentec now cease to exist as a stock how does this work?
    27 Jul 2012, 10:45 AM Reply Like
  • Airway
    , contributor
    Comments (7) | Send Message
     
    Ok Pros, I need a little guidance here. I'm pretty much a novice at investing but was fortunate enough to purchase 1000 shares of AUTH a couple of years ago. Fortunately I still own it. What should I do now? What happens once the company sells to Apple, what happens to my AUTH stock? Should I sell my shares of AUTH prior to the official sale. Does anyone have an idea regarding the timeline of the sale? Any guidance & advice would be greatly appreciated! Thanks
    28 Jul 2012, 08:32 AM Reply Like
  • Albiec
    , contributor
    Comments (2) | Send Message
     
    If you do nothing and nobody else bids higher AAPL will acquire the shares at $8. The stock will be delisted and your $8,000 of AUTH will be converted to $8,000 worth of AAPL shares. You can then hold AAPL or sell.
    30 Jul 2012, 08:24 AM Reply Like
  • johngeza
    , contributor
    Comment (1) | Send Message
     
    Questions from a novice:

     

    Isn't AUTH mgmt REQUIRED to honor the deal with AAPL? So why are people thinking the price will go over $8?

     

    Any chance the deal could fall apart and the price drops below $8 ?!
    30 Jul 2012, 04:53 PM Reply Like
  • Airway
    , contributor
    Comments (7) | Send Message
     
    Albiec & Johngeza, Thanks for the responses, I sincerely appreciate the guidance and education. You did bring up a good point Johngeza, should the deal fall apart (which is unlikely unless AAPL gets upset by AUTH considering bids from another suitor), the AUTH stock could actually fall back to "pre-offer" levels.
    Airway
    31 Jul 2012, 09:37 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|