Agree.
cbs.marketwatch.com
ADC to buy PairGain for $1.6 billion
By Steve Gelsi, CBS MarketWatch
Last Update: 9:35 AM ET Feb 23, 2000 NewsWatch
MINNEAPOLIS (CBS.MW) -- PairGain Technologies' shares soared in pre-market trading Wednesday after ADC Telecom said it's buying the DSL specialist in a stock swap that values PairGain at $20.13 a share, or $1.6 billion.
ADC (ADCT: news, msgs) said it'll pay 0.43 shares of its stock for each share of PairGain (PAIR: news, msgs).
The deal values PairGain at $20.13 per share, or a premium of about 25 percent.
In regular-session trading on Tuesday ahead of the deal's announcement, the stock closed up 5/16 at 16 1/16. PairGain shares rose 3 15/16, or 25 percent, to 20 in pre-market trades. ADC's stock jumped 4 7/8 to 46 13/16 on Tuesday.
ADC said the deal strengthens its position as a broadband supplier.
Tustin, Calif.-based PairGain designs, manufactures and markets digital subscriber line networking systems.
ADC plans to complete the deal in its third quarter.
ADC expects the acquisition to be nondilutive to its earnings per
share for the balance of fiscal year 2000, and it says it will add 5 cents to earnings per share in fiscal 2001. |
