Seeking Alpha

Power-One's (PWER +56.8%) deal with ABB includes a "no shop" agreement and $20M breakup fee, and...

Power-One's (PWER +56.8%) deal with ABB includes a "no shop" agreement and $20M breakup fee, and is supported by P-E firm Silver Lake (Power-One's biggest shareholder), says Stifel, which doubts a higher bid will arrive. Stifel notes Power-One's power supplies and solar inverters complement ABB's power control/quality offerings, and argues "the traditional inverter industry is facing a shakeout," as price/margin pressure, competition, and technology changes take their toll. Inverter vendor Enphase Energy (ENPH +4.7%) is up in sympathy.
Comments (5)
  • DumpsterDiver
    , contributor
    Comments (251) | Send Message
     
    Left my last couple pennies to the arbitragers and exited PWER today for a 50%+ profit in three months. Won't ever complain when that happens...
    22 Apr 2013, 03:32 PM Reply Like
  • Long_Short
    , contributor
    Comments (11) | Send Message
     
    As a PWER shareholder, not a fan of this acquisition. PWER had much more gas in the tank as the recovery in solar demand continues.
    22 Apr 2013, 05:51 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5366) | Send Message
     
    But didn't the majority of shareholders agree with the deal? Did you vote?
    22 Apr 2013, 09:04 PM Reply Like
  • DumpsterDiver
    , contributor
    Comments (251) | Send Message
     
    The offer was just announced Sunday night, so no one's voted yet. Then again, given how quickly the share price snapped to within just a few cents of the offer number, the market clearly believes this is a done deal, and there doesn't appear to be much reason to think otherwise. (Especially considering that well over half of the outstanding shares already changed hands at that price on Monday -- wouldn't guess that too many of the buyers were buying them in order to vote against the acquisition....)
    23 Apr 2013, 04:01 AM Reply Like
  • Long_Short
    , contributor
    Comments (11) | Send Message
     
    As Dumpster states, the offer was just announced so we haven't even received proxy materials yet. Silver Lake, the largest shareholder, is supporting the buyout (I don't understand why), which means that votes by retail shareholders won't likely matter. The "no shop" (usually boards require a "GO shop" not a NO shop) means higher offers are not likley. I do plan to vote against once I receive my proxy, FWIW.
    23 Apr 2013, 09:05 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:

|