Mark[ox5],
Perhaps there is little interest in discussing this on the Yahoo! thread because the Teltrend merger is "old news" which was long ago factored into the stock price.
If you are really interested, here is some light reading:
freedgar.com
freedgar.com
As Rich pointed out there were a number of positive synergies that came out of the merger. You are free to read the opinions of the investment bankers of both companies (Goldman Sachs was advising Westell). Of course these consultants were paid, but not paid to lie. (Similar to paying auditors to look at the books, they are paid, not paid off.)
The Teltrend shares were swapped for 3.3 Westell with no restrictions. Teltrend was a $25-$30 stock before the merger, but at the peak could effectively have been sold for over $130 after the merger went through. Some took the money and ran right away, others held and sold later (big seller through the MM BARD a few months back). There is no secret stash of shares somewhere, most are just part of the float now. As was pointed out on the Yahoo! thread, when former Teltrend holders liquidated their windfall profits it put pressure on the stock similar to what happens when Efficient insiders exercise options and sell on the open market.
(Edit: IMHO it is a good thing Westell is not a DSL pure play. Although TAP and CPI are not expected to show hockey stick growth, they are profitable and continue to grow nonetheless.)
Good luck in your pursuits,
Gary |
