3 Merger and Acquisitions Stock Stories Recommended on Tuesday
Cisco Corp. (NASDAQ:CSCO): Current price $25.56
On Tuesday, Cisco and Sourcefire reported that Cisco will purchase the cybersecurity solutions firm Sourcefire. The companies will unite their world-class products, tech, and research teams, and through the terms of the arrangement, Cisco will pay $76 per share in cash in return for each share of Sourcefire, and assume outstanding equity awards for a total purchase price of roughly $2.7 billion, including retention-based incentives. The transaction has been cleared by the board of directors of each firm.
Telefonica S.A. (NYSE:TEF): Current price $13.53
The Dutch telecoms group KPN will divest its German division to Telefonica at a cash price of $11 billion and shares, in a transaction that will test antitrust regulators’ attitudes in Europe’s biggest mobile market. Should the deal pass scrutiny, the new entity would hold a share of approximately 30 percent of Germany’s mobile service revenue, and would be in a stronger position to challenge Deutsche Telekom and Vodafone, which hold 35 percent apiece. Telefonica reported that it anticipates the deal will close in the first half of 2014, which implies that it expects a quite thorough antitrust review by the European Commission.
Neonode Inc. (NASDAQ:NEON): Current price $8.15
The optical touch tech firm Neonode said it has reached a license agreement with an unidentified Tier-One Consumer Electronics OEM in South Korea, through which to integrate its MultiSensing touch tech into high-volume consumer applications. Neonode’s growing success in budding consumer markets, like tablets and wearables, is a credit to its patented optical MultiSensing touch technology, which offers OEMs an incomparable value deal.
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