Shares of Hypercom Corp. (HYC) spiked 48 percent to $6.23. The payment technology company said on Thursday that it had rejected an unsolicited bid from rival VeriFone Systems Inc. (PAY) to buy it for $290 million, or $5.25 a share, in cash, asserting that the offer is too low.
“We believe that VeriFone’s proposal is opportunistically timed to exploit our second quarter 2010 results which were affected by supply chain issues that have been resolved,” CEO Philippe Tartavull said in a statement. “Hypercom is currently experiencing the strongest growth in global order demand in recent years and we are focused on converting this demand into revenue in the second half of 2010.”
VeriFone’s offer represents a premium of 24 percent from Hypercom’s closing pps on Wednesday.
Hypercom, which expects to “significantly exceed” Wall Street revenue expectations for the third quarter, also said it believes VeriFone’s unsolicited takeover bid is “opportunistic and intended to disrupt its business, which has successfully taken market share from VeriFone in several markets.”
Shares of of Phoenix, Arizona-based Hypercom were up 46.10% to $6.18 Thursday morning.