Ronald - if we are to take the news article reposted here at face values, CRUS mgt has misfired and forced Messr Teo's hand. Obviously, we do not know what exactly has transpired under the cover, but the right plan was an invitation for a response - and CRUS mgt got the response loud and clear. However, I do not think Teo is in a pure reactive mode, if we are to take the article at face value, since he has already had a co in mind. That should calm the nerves of both other institutional investors and employees. Admittedly, his backgrounds are not hi techs, so no matter how much of a quick study he may be, people will be nervous if he behaves like a 80s raider. Indications are that he is NOT and he is willing to let the knowledgeable people in on this deal. That should set up the backdrop if CRUS mgt wants to make a rebuttal.
Right now, since both sides have made only the 1st moves, it is hard [for me anyway] to say what is the outcome. The co can certainly be merged with another co as a whole; however, spinoff is another way to enhance shareholder values. Finally, there is no reason why a combination of the two cannot be persued at the same time.
I think the drama has just begun
rgds Bosco |
