Comverse Jumps on Acquisition Talks

Comverse Technology Inc. (CMVT.PK) jumped 13 percent in early trading Monday, the highest intraday price since June 3. The strength is attributed to a Globes report which said that the voice-mail software maker is in advanced talks to be acquired by Oracle Corp. (ORCL) and Platinum Equity LLC at between $9.5 to $10 a share. The offer reflects a company value of $1.85 – $2.05 billion, a premium of over 30% on the company’s market cap.

Comverse’s PPS closed at $7.14 on Wall Street on Friday, giving the New York City – based co. a market capitalization of $1.46 billion. CMVT”s current market cap stands at $1.63B.

CMVT shares are seeing significant volume; mid-way through the session the ticker has already traded nearly 2 million shares, well above the daily average volume of 1.2 million shares.

At last check, CMVT shares were up $0.86 to $8.00, a gain of 12.18%. The 52 week trading range for shares of Comverse Technology Inc. has been between $4.59 and $9.90 per share.

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About Ron Haruni 1124 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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