A bidding war has begun for Andrew Corp. with Commscope Inc. announcing it is proposing to acquire all of the outst...
August 8, 2006
A bidding war has begun for Andrew Corp. with Commscope Inc. announcing it is proposing to acquire all of the outstanding shares of Andrew Corp. for US$9.50 per share in cash.
The company says its all-cash proposal represents a premium of approximately 36% over the US$6.97 per share value Andrew’s shareholders would receive under the existing merger agreement between Andrew and ADC Telecommunications, Inc. announced in late May.
The proposal, which was unanimously approved by CommScope’s board of directors, is valued at approximately US$1.7 billion, including assumption of US$186 million of Andrew net debt.
“We believe that our all-cash proposal is extremely compelling for Andrew shareholders and provides superior value over that contemplated by the existing merger agreement with ADC,” said Frank Drendel, CommScope’s chairman and CEO.
“Under our proposal, Andrew shareholders will receive a substantial cash premium for their shares without the significant uncertainties inherent in ADC’s proposed stock-for-stock merger transaction.”