hello Pancho, Ben & all - I agree size makes a difference <g>. I ve gathered some more bits and pieces of the deal.
Evidentally, RAPT statue of limitation (restriction to do pool of interest deal) went out last week! So, people have indeed anticipated a merger. However, the Prudential analyst (forgot name) has basically said what I ve said yesterday - that there was a disappointment of the lack of premium.
RAPT CEO will step aside when the deal is completed. My guess he is ready to do something else. The upshot is that investors who are planning to hold the merged co for the long term will ve to examine AXNT CEO.
RAPT will not ve any layoff due to the merger.
As I ve speculated, AXNT and RAPT do not ve much overlap - therefore, the deal will maximize the install base potential with no cannibalism effect.
Not sure if it is attributed to the Pru anal-ist, the real concern is culture. AXNT has a direct sell structure while RAPT employs reseller. So, again, long term investors will ve to see how they can merge the 2 models.
Right now, I am holding my shr but I am scaling back my expectations. I do suspect, based on such a lack of premium, AXNT may probably have a superlative qtr that the 2 mgts are confidence AXNT will rebound. If AXNT can return to the 52 wks hi of 25~, RAPT may go to 18.
What do you think?
rgds Bosco |
