< I think if they've held out this long, then the takout price will be north of 50<
I would be very surprised if a number like $50 came about. While FORE has some very good core technology and products, they also have quite a few underperforming assets. Although their sales were smaller than FORE's, I think that XYLN was a much more valuable property(measured by sales/share). If FORE gets over $30 its a very good deal. If they hold out for $50, I don't think they will ever get it. You also need to take into account FORE's own recent acquisition commitment and what that may or may not be worth to an eventual FORE acquirer...
I think the reason that XYLN management finally sold out was the realization that, in the long term, there just wasn't going to be profitable space for them to remain independent. If FORE management doesn't realize/accept this, they they probably won't sell for an attainable number and the stock will be back in the low teen's.
Overall, my perception is that FORE has some very good engineering(consequently, good products), they have an admirable technological vision, but, they have pretty crappy business management and unfocused, inconsistent sales/marketing...
I'll be very satisfied with anything over $30! |
