FromBriefing.com
09:33 ET ******
Abacus Direct Corp. (ABDR) 74 9/16 closed: Shares of provider of specialized consumer information and
analysis are expected to realize a large gain this morning after DoubleClick Inc. (DCLK 88 13/16) entered a
definitive merger agreement with ABDR in a transaction valued at $1 billion in stock. The idea behind the deal
is to create a comprehensive global Internet advertising solutions for marketers and Web publishers.
According to the terms of the agreement, DoubleClick will issue 1.05 shares of its stock for each share of
Abacus stock. Based on Friday's closing price of $88.8125, this deal is worth $93.25 to Abacus shareholders,
a 25.1% premium to last week's closing price. Given how poorly the Internet stocks have performed in recent
sessions, this deal could prove to be a risky proposition for ABDR shareholders. After all, as recently as the
last week of April, shares of DoubleClick were trading in the $170 range. Since then, the stock has lost
considerable value, along with other high flying Net stocks. While no one can say whether the bottom in
DBLK has been reached, shares of DoubleClick were trading under $50 at the beginning of the year.
Meanwhile, the shares of ABDR have behaved in a more stable fashion, trading between $60 and $80 the past
several months, even with the most recent correction in the market. While today's ABDR stock price is likely
to rise on news of the deal, much depends on whether DBLK can find a solid footing. This will be determined
by the mood of investors. In recent sessions, investors have shied away from Internet stocks due to the recent
trend in interest rates. |
