Millicom International Cellular
were among technology's losers Monday, plunging 27% after the telecom company said it ended all discussions to be acquired.
In January, shares soared after the company said that it was conducting a strategic review after it had received a "high number" of unsolicited approaches. In March, Millicom said it had received several nonbinding acquisition offers. "Since May 2006, the company has been in prolonged discussions and due diligence with one potential purchaser, but has now concluded that this purchaser will not be in a position within an acceptable timeframe to make a binding offer that is suitably attractive, given the current strong performance of the business, or sufficiently certain of closing," Millicom said Monday morning. According to the
Wall Street Journal
was set to announce a $5.3 billion acquisition of Millicom. Millicom said it "remains confident" in its future as an independent company. Shares were trading down $12.28 to $33.15.
plummeted 40% after the company said it would restate its financial reports for 2002 through 2005 after an investigation turned up improper accounting. The company also announced the resignations of its chief executive and chief financial officer and its senior vice president of strategic business development. "As previously reported, since January 10, 2006, the company has received a number of anonymous letters primarily alleging improprieties relating to the company's financial reporting, fulfillment of customer contracts and disclosure practices," Merge said in a press release. "More specifically, the letters contained allegations of improper revenue recognition practices."
As for the management changes, CEO William Mortimore will be replaced by Brian Pedlar and Robert White, both of whom will serve as co-presidents and co-CEOs on an interim basis. Steve Oreskovich, meanwhile, will serve as interim principal financial officer, replacing CFO Scott Veech. Michael Dunham, chairman, will now serve as Merge's principal executive officer on an interim basis. Shares were down $4.91 to $7.40.