Speculating in Takeover Targets Message Board

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Strategies & Market Trends : Speculating in Takeover Targets

ULBI 7.030

+2.5%

Oct 31 9:30 AM EST

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To: Cautious_Optimist who wrote (3842)	10/29/2014 10:40:29 AM
From: richardred	of 7239

I agree for the most part. One has to wonder if GOOG or Yahoo would like to own this. I eventually would like to own some. I sure wish it was through an acquisition on CNVR by way of Twitter stock. This on my previous successful CNVR speculation, and as a possible Twitter White Knight. CNVR would not be a costly one to Twitter, IMO. I think they need an acquisition. Public companies are sparse now. However there will be plenty of new private companies from which to choose. I just see so many continued uses of Twitter by Nielsen N.V. (NLSN)-NYSE. As mentioned earlier on this board. I still like ComScore Inc.(SCOR), but its had a nice run up since I put it on my watch list. Message 29381744 Why Can't CNVR find a White knight in the Big ad space or by Twitter? The reasoning below. I can't think of any recent deals that would be this accretive to a target company's earnings >Additionally, Alliance Data expects the acquisition to be accretive to its core earnings per share by 50 cents in the first year and 75 cents in the second. The Zacks Consensus Estimate for 2015 is currently pegged at $13.73. We expect the number to move north as analysts start incorporating the accretion in their estimates. >The Transaction in Detail Alliance Data will acquire Conversant for $2.3 billion, which is equivalent to $35 per Conversant share, a 34% premium to the 30-day average closing price of Conversant's stock. This consideration comprises 48% in cash and 52% in shares, which values Conversant’s shares at 10 times its 2015 adjusted earnings before interest, tax, depreciation and amortization (:EBITDA) of $230 million. The exchange ratio of 0.07037 will remain fixed at close. The cash consideration will vary but lie within the $14.98 - $18.62 per share ($284 -$233 price per share of Alliance Data stock) band. Though an acquisition, this agreement has been structured as a merger, where Conversant stockholders will own 7% of the combined company and the remaining 93% will be owned by Alliance Data stockholders.

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