SAIFY
عضو نشط
- التسجيل
- 4 أغسطس 2004
- المشاركات
- 342
arti
سهم متجهه الى 32
اللي عنده pre market broker
يستفيد من السهم
=======
سهم وصل اعلى من هاي سنوي بالبري ماركيت
[The implied value is $33.89 per Artisan share].
UPDATE 3-UK's ARM buys Artisan for $913 mln, shares fall
August 23, 2004 04:51:00 AM ET
(Writes through with analyst, fund manager, executive comments)
By Sudip Kar-Gupta
LONDON, Aug 23 (Reuters) - British semiconductor designer ARM Holdings Plc agreed to buy U.S. technology firm Artisan (ARTI) for $913 million, to boost its product range, but ARM shares slumped on Monday on concerns it had overpaid.
Artisan Components Inc. stockholders will receive $9.60 in cash and ARM stock equal to 4.41 ARM American Depositary Shares (ADS) for each outstanding Artisan share, ARM said.
Based on closing prices for ARM ADSs as of August 20, 2004, the implied value is $33.89 per Artisan share, representing an aggregate of around $913 million.
On that basis, ARM's takeover represents a premium of around 42 percent to Artisan's closing share price on Friday of $23.88.
ARM shares fell 15 percent to 85 pence in mid-morning trade -- the stock's lowest price since September 2003 -- as analysts and investors said ARM might have overpaid.
"It's probably a bit on the pricey side," said Paul Mumford, fund manager at Cavendish Asset Management, which holds ARM stock.
Arbuthnot Securities analyst Michael Blogg had similar concerns.
"It broadens the scope and customer base of ARM's business, but they're paying a pretty high price and it could be earnings dilutive," said Blogg, who has a "hold" rating on ARM shares.
WIDENING PRODUCT RANGE
Artisan provides designs to help manufacture integrated software and electronic circuits and its customers include many semiconductor manufacturers.
"Artisan has a proven sales channel which will be highly complementary with the ARM sales channel," ARM Chairman Robin Saxby said in a statement.
"The combined entity will be able to reach more customers with a broader product portfolio to better serve our combined user community," he added.
ARM denied it had overpaid for Artisan.
"We don't have a track record of overpaying," Chief Executive Warren East told reporters on a conference call.
East added that the acquisition would be earnings neutral, and that ARM might make further acquisitions.
ARM has agreed to pay a break-up fee to Artisan of approximately $18 million if the deal does not go through. Similarly, Artisan might pay a maximum break-up fee of $31 to ARM.
Artisan Chairman Lucio L. Lanza and Chief Executive Mark R. Templeton will join ARM's board once the deal is complete. The deal, which is subject to shareholder and regulatory approval, is expected to complete in the fourth quarter of 2004.
ARM shares have underperformed the DJ Stoxx European technology sector by about 20 percent since the start of 2004. REUTERS
© 2004 Reuters
سهم متجهه الى 32
اللي عنده pre market broker
يستفيد من السهم
=======
سهم وصل اعلى من هاي سنوي بالبري ماركيت
[The implied value is $33.89 per Artisan share].
UPDATE 3-UK's ARM buys Artisan for $913 mln, shares fall
August 23, 2004 04:51:00 AM ET
(Writes through with analyst, fund manager, executive comments)
By Sudip Kar-Gupta
LONDON, Aug 23 (Reuters) - British semiconductor designer ARM Holdings Plc agreed to buy U.S. technology firm Artisan (ARTI) for $913 million, to boost its product range, but ARM shares slumped on Monday on concerns it had overpaid.
Artisan Components Inc. stockholders will receive $9.60 in cash and ARM stock equal to 4.41 ARM American Depositary Shares (ADS) for each outstanding Artisan share, ARM said.
Based on closing prices for ARM ADSs as of August 20, 2004, the implied value is $33.89 per Artisan share, representing an aggregate of around $913 million.
On that basis, ARM's takeover represents a premium of around 42 percent to Artisan's closing share price on Friday of $23.88.
ARM shares fell 15 percent to 85 pence in mid-morning trade -- the stock's lowest price since September 2003 -- as analysts and investors said ARM might have overpaid.
"It's probably a bit on the pricey side," said Paul Mumford, fund manager at Cavendish Asset Management, which holds ARM stock.
Arbuthnot Securities analyst Michael Blogg had similar concerns.
"It broadens the scope and customer base of ARM's business, but they're paying a pretty high price and it could be earnings dilutive," said Blogg, who has a "hold" rating on ARM shares.
WIDENING PRODUCT RANGE
Artisan provides designs to help manufacture integrated software and electronic circuits and its customers include many semiconductor manufacturers.
"Artisan has a proven sales channel which will be highly complementary with the ARM sales channel," ARM Chairman Robin Saxby said in a statement.
"The combined entity will be able to reach more customers with a broader product portfolio to better serve our combined user community," he added.
ARM denied it had overpaid for Artisan.
"We don't have a track record of overpaying," Chief Executive Warren East told reporters on a conference call.
East added that the acquisition would be earnings neutral, and that ARM might make further acquisitions.
ARM has agreed to pay a break-up fee to Artisan of approximately $18 million if the deal does not go through. Similarly, Artisan might pay a maximum break-up fee of $31 to ARM.
Artisan Chairman Lucio L. Lanza and Chief Executive Mark R. Templeton will join ARM's board once the deal is complete. The deal, which is subject to shareholder and regulatory approval, is expected to complete in the fourth quarter of 2004.
ARM shares have underperformed the DJ Stoxx European technology sector by about 20 percent since the start of 2004. REUTERS
© 2004 Reuters