CYOE BUYOUT :
San Jose, CA (Business Wire) - Cisco Systems, Inc. (Nasdaq:CSCO - news), the
worldwide leader in networking for the Internet, today said it would buy rival Coyote
Network for $263.7 million, bolstering its position as a leading supplier of telecom
equipment.
Cisco Systems, Inc. (Nasdaq:CSCO - news), the worldwide leader in networking for
the Internet, said it would pay $25 per share cash for Coyote Network Systems
(Nasdaq: CYOE - news) or nearly quintuple the value of Coyote's closing share price
on Wednesday of $5.875.
San Jose, Ca. based Cisco Systems said it was prepared to pay a hefty premium for the
Westlake Village, CA, Coyote Network Systems given the deal's capacity to widen its
range of corporate hardware products and boost its competitive edge in the telecom
equipment field.
''This transaction provides tremendous synergies in products, markets and services with
very little overlap, creating exciting new opportunities for CA in many new and emerging
markets,'' Cisco Systems President John Chambers said in a statement.
The deal creates a company with more than $60 billion in revenues and products that
large corporations are crying
out for as they connect far-flung computer systems to central corporate databases and
then wire them to the Internet.
Chambers said Coyote offers telecom equipment, international long distance services
and network management and customer support services administrators to have a global
view of a company's telecom systems. Both companies supply hardware that knits
together mainframe and personal telecommunications systems.
Piper Jaffray analyst Michael Fantetti switched course only two weeks after
recommending that his clients sell short Coyote Networks stock, saying at the time the
company faced an uncertain competitive future.
Specifically, the analyst said the purchase of Coyote will allow Cisco Systems to
become more competitive in the
market for telecom equipment, international long distance services and network
management. A Coyote partnership with Microsoft Corp. (Nasdaq:MSFT - news)
could also bolster Cisco Systems's own ties to Microsoft, he said.
Cisco Systems ''has demonstrated the ability to turn acquisitions into gold in the
long-term,'' Fantetti wrote in a note to
brokerage clients after news of the deal, adding that it changes the competitive
landscape in the telecom industry.
Cisco Systems, renowned in the industry for its 25-year practice of swallowing up
weaker rivals, will buy Coyote Systems through a cash tender offer it aims to close
within a couple of months.
''Of course this is an April Fools Joke', said Mama Bear, a Silicon Investor regular, and
loose wire kook on the Internet, referring to the absurd notion that a well run company
like Cisco Systems would buy a company as derelict as Coyote Networks. "Yes,
MaryinRed probably stole much of my thunder, but I had thought it better to wait until
after the close of trading to post this joke so that no one would have the opportunity to
panic buy after reading the first few sentences. I also worked much too hard on this
dummied up press release to toss it in the trash can after her post. I guess great minds
think alike.", said Mama Bear.
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HAHA, This is a repost of mama bear's 4/1 joke :)
i think we will enjoy it more now :)
Thanks m. bear! take me a while to find it.
L. |
