Telit Communications dropped out of takeover talks with rival IoT company u-blox citing inability to agree terms, though other suitors appeared to still be in the running for the UK-headquartered company.
In a statement, Telit explained its board recognised the “industrial logic” of a tie-up with u-blox, but decided to walk away after “extensive talks” made it clear they would not be able to agree “terms which would ensure value creation” for its shareholders.
It added “a protracted period of uncertainty and distraction” related to extended negotiations would not be “in the best interests of Telit or any of its stakeholders”.
The company said it remains confident in its prospects and growth potential as an independent entity.
U-blox made an all-share offer [1] for Telit in November 2020, adding to interest [2] the company received from from asset management company DBay Advisors and hardware company Lantronix.
In December 2020, Telit said DBay Advisors’ offer undervalued the company, but said negotiations would continue.
[1] https://www.mobileworldlive.com/featured-content/top-three/u-blox-enters-telit-takeover-fray
[2] https://www.mobileworldlive.com/featured-content/top-three/telit-courted-by-dbay-advisors-lantronix
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