| |
Computer Sciences Corporation (NYSE: CSC) and Policy Management Systems Corporation (NYSE: PMS), d/b/a Mynd, announced they have entered into an agreement whereby CSC will acquire Columbia, S.C.-based Mynd for $16 per share in an all-cash transaction.
With approximately 35,500,000 PMS shares outstanding, the offer has an equity valuation of about $568 million. The agreement was approved by Mynd's board of directors, according to a story at: biz.yahoo.com
After the announcement, Wall Street expressed their view of CSC's move by dropping CSC's market valuation about 15%, or more than $1.5 billion, in trading almost 8 times average daily volume.ÿCSC also lowered its revenue growth expectations for its fiscal first quarter, which was also credited the sharp decline in its stock. See dailynews.yahoo.com
PMS shares, which have fallen from the mid-$50/share range in the last 18 months to a low of $8/share in March, rose 35% to about $15 following the news.ÿ This is still below the high teens around May 1 before EDS called off (around May 15) a proposed acquisition of PMS for $18 to $20/share.
A Yahoo! Financial profile of CSC is at: biz.yahoo.com
A Yahoo! Financial profile of PMS is at: biz.yahoo.com
Doug Simpson
Wethersfield, CT, USA
Ask. Answer. Network at port4.com
"Global bull sessions" on e-finance and e-insuranceÿ |
|
