Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: newsreporter Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2276  
Subject: Takeover Speculation Date: 9/8/2011 6:54 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
VeriSign Cancels Appearances at Conferences, Fueling Takeover Speculation
http://goo.gl/QO9l3


VeriSign Inc. (VRSN) rose 7.6 percent on the Nasdaq Stock Market after canceling appearances at two investment conferences, fueling speculation that the company is in talks to be acquired.

Pulling out of two events without explanation suggests that a “significant corporate action may be pending,” said Ed Maguire, an analyst at Credit Agricole Securities Inc. in New York. While the company may be preparing to announce a new chief executive officer, a management change alone wouldn’t warrant the stock surge, he said.

The likely buyer would be a private-equity firm, which could shake up the company to boost profit, Maguire said. There have been more than 380 private-equity deals announced in the U.S. technology industry in the past year, with an average size of about $102 million and a premium of 48 percent, Bloomberg data show. VeriSign, which operates computers that direct Internet traffic, has a market value of $5.74 billion.

“VeriSign is an attractive (albeit expensive) target for private equity, given the highly recurring cash flows and untapped earnings leverage in the model,” Maguire, who recommends buying the shares, said in a report to clients.

...

VeriSign backed out of an appearance at a ThinkEquity LLC conference next week, following a cancellation of its presentation at a Citigroup Inc. gathering.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Post of the Day:
TMFDeej's CAPS Blog

Name of the Game: Tax Avoidance
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement