Clarifying response, QMDC rumored to have bid on acquiring another co whose technology, mkt share, Y2K capability, etc. QMDC desired. The bid was rumored to be very low and the target company to have turned it down. The target co rumored to be worth at least 4 and potentially up to 7. QMDC rumored to have offered 3 b/c rumored they made the bid when value of target co about 2.
Point is it's rumored QMDC increasing the bid, and if so, it would have to be at least 4 if the rumor on value of the tgt co true, thus the 33% increase in bid. And a bid even of 4, may not be accepted by the tgt co.
Anyways, the higher the bid, the greater the cost to QMDC, and a negative effect on stock price, especially the greater the bid. |
