This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Acquisition Of Telular Corporation By Avista Capital Partners May Not Be In The Best Interests Of Telular Shareholders

SAN DIEGO and CHICAGO, April 29, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Telular Corporation (Nasdaq: WRLS) by Avista Capital Partners, a Canadian private equity firm.  On April 29, 2013, the companies jointly announced a definitive agreement whereby an entity controlled by Avista will commence a tender offer to acquire all outstanding shares of Telular common stock for $12.61 in cash.  The proposed acquisition is expected to close within 50 to 75 days.

(Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

The Board of Directors' Actions May Prevent Telular Shareholders from Receiving Maximum Value for Their Stock

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Telular is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the acquisition.  At least one analyst, Loewen, Ondaatje, McCutcheon Limited, projects a target price of $18.50, well-above the current $12.61 offer price.

Is the Acquisition Best for Telular and Its Shareholders?

On January 31, 2013, Telular released its earnings for the first quarter 2013.  Total revenue from Telguard and TankLink, the company's Event Monitoring Segment, increased to $15.6 million, or 17%, from the year prior.  Current President and Chief Executive Officer Joe Beatty was quoted as saying, "We had a strong start to 2013, as our business units combined to deliver strong growth in Adjusted EBITDA during the first quarter.  Looking ahead, we have a very well defined growth strategy centered on releasing key service enhancements during the year and leveraging these new services to improve our market position in each line of business."

Given these facts, the firm is examining the board of directors' decision to sell Telular now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.   

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs