Alvarion-Interwave merger back on
By CBS MarketWatch
Last Update: 4:54 PM ET Oct. 16, 2004
SAN FRANCISCO (CBS.MW) -- Alvarion Ltd. reached new terms for its acquisition of Interwave Communications, with a $40.5 million revised price, the telecommunications companies said Saturday.
Alvarion (ALVR: news, chart, profile), which makes wireless broadband network equipment, will provide financing for Interwave (IWAV: news, chart, profile) and pay $4.18 a share, a 59 percent premium to Interwave's closing price Friday. Shareholders will be asked to approve the pact in six to eight weeks, a joint statement said.
An acquisition was first announced July 27, with a $56 million value and payment of $5.75 a share for Mountain View, Calif.-based Interwave, which also makes equipment used in wireless networks.
On Sept. 30, Tel Aviv, Israel-based Alvarion said a review of Interwave financial results would not satisfy certain terms of the purchase.
The next day, Interwave denied it had breached any terms and later filed suit over the broken accord.
An independent auditor's note in Interwave's 10-K filing on Oct. 13 contained a note that continuing losses from operations raised doubt that the company could remain "a going concern."
Under Alvarion's latest offer, Interwave will drop its suit.
Ahead of the news, Alvarion shares rose 40 cents Friday, or 2.7 percent, to $15. Interwave shares shed 12 cents, or 4.6 percent, to $2.46.
cbs.marketwatch.com
|
