Westchester, Ill -- Late Wednesday, Andrew Corporation announced they had rejected Hickory-based CommScope's takeover bid. The offer -- $9.50 in cash for each share of Andrew -- was termed "wholly inadequate" and didn't reflect the company's true value."
The approximate $1.7 billion in cash and assumed debt bid had valued Andrew at a 20% premium compared to Andrew's closing price last Friday of $7.89.
Additionally, Andrew Corporation announced that they had mutually agreed to terminate the merger agreement with ADC that was previously announced on May 31. But the company had agreed to pay ADC $10 million and another $65 million if Andrew "effects a business combination transaction within 12 months."
Many investors and analysts criticized the deal from the very beginning, and ADC stock has fallen by as much as 45% since the merger was unveiled.
Andrew makes an array of products such as antennas, base stations and towers used in the cable, wireless, satellite and phone markets. The company reported $1.9 billion in sales last year. Stock symbol: ANDW
CommScope makes coaxial, fiber-optic cable and related products that enable network operators to provide cable television, Internet access and phone services over a single line. The company had $1.34 billion in revenue during 2005. Stock symbol: CTV
ADC Telecommunications supplies broadband network equipment, software and systems integration services for high-speed Internet, data, video and voice services. Stock symbol: ADCT
