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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2636)4/26/2011 10:26:02 AM
From: richardred  Read Replies (1) | Respond to of 6147
Bullseye on SMOD. First takeout of the year. I like the provision that allows them to solicit alternative bids through June 9.

Smart Modular Takes $9.25/Share Bid From Silver Lake
Apr. 26 2011 - 9:05 am

Smart Modular Technologies (SMOD) has agreed to be acquired for $9.25 a share in cash by Silver Lake Partners and Silver Lake Sumeru, in a transaction valued at about $645 million.

The memory module company said that after evaluating a range of alternatives, a special committee of the board decided the Silver Lake bid was in the best interests of holders.

“As a private company, we believe we will have greater flexibility to deliver to our customers the benefits of our long-term strategies, while managing the volatility of the DRAM cycles that have and will continue to be part of our business model,” CEO Iain MacKenzie said in a statement. “As a partner with strong technology expertise, Silver Lake will be committed to supporting our ability to grow our business around the world and provide long-term opportunities for our employees, customers and broader industry.”

The deal is expected to close in the third quarter. Debt financing for the deal is being provided by J.P. Morgan and UBS.

The agreement includes a go-shop provision that allows SMOD to solicit alternative bids through June 9.

The Street seems modestly hopeful that a higher bid might be out there: SMOD this morning is up $1.12, or 13.8%, to $9.30, slightly above the Siliver Lake offer.