(Sharecast News) - Telit Communications said it had received an all-share bid approach from Swiss rival u-blox valuing and was considering the proposal.
U-blox's proposal would lead to Telit shareholders receiving u-blox shares with a value of £2.50 for each of their Telit shares. The deal would lead to Telit shareholders owning about 53% of the combined internet of things technology company.
Telit shares closed at 168.20p on Thursday. The shares jumped 18% to 199p at 08:38 GMT on Friday valuing the company at £262m.
"The board of Telit is considering the proposal, together with its financial adviser, Rothschild & Co, and a further announcement will be made when appropriate," Telit said. "The proposal assumes any such merger would be structured as an offer for Telit by u-blox."
U-blox said talks were at an early stage and subject to due diligence but that its board believed a deal had "a strong strategic rationale and could result in substantial synergies for both organisations".
8 Aug 2016 13:26
Telit Communications issues upbeat full-year guidance
(ShareCast News) - Telit Communications reported a drop in profits at the half-year stage despite improved margins, as the company continued to invest in research and developments and due to setbacks in the ramp-up for some of its products in the US. Nevertheless, the company - as well as some analy
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