As Tekelec (TKLC) continues trading slightly above its $11/share buyout price, research firm Oscar Gruss has decided to initiate coverage with a Buy rating. The firm considers Tekelec to be "an attractively-priced option" at or near $11/share, and thinks there's at least a 20% chance "a strategic buyer will express renewed interest" in the company.
As commenter Charles A. Smith notes, Tekelec (TKLC +13.7%) shares are now changing hands roughly 2% above the $11/share buyout price the company has agreed to. Investors are speculating a higher bid will arrive, though some think Tekelec's continued dependency on its slow-growing call-signaling business will be a deterrent.
Network management software vendor Tekelec (TKLC) is being acquired for $780M, or $11/share, in cash, by a consortium led by Siris Capital, a private-equity spinoff of SAC Capital. The deal represents an 11% spinoff to Tekelec's Friday close. The company's shares have effectively moved sideways over the last 13 years.
Tekelec (TKLC), a provider of communications infrastructure software, gains 13.7% after preannouncing Q3 revenue of $103M-$106M and EPS of $0.16-$0.20, above a consensus of $92.6M and $0.06. In addition, the company reports receiving a $20M order for its Diameter IP signaling software, which was launched last October.
We are a leading global provider of communication network software and systems that enable our customers to effectively and efficiently deliver an array of communications services including voice, text messaging, and mobile data services. Our customers predominantly include mobile (or wireless)...More