This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Acquisition Of Globecomm Systems Inc. By Wasserstein & Co. May Not Be In The Best Interests Of Globecomm Systems Inc. Shareholders

Stocks in this article: GCOM

SAN DIEGO and HAUPPAUGE, N.Y., Aug. 26, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Globecomm Systems Inc. (NASDAQ: GCOM) ("Globecomm") by Wasserstein & Co., a private equity firm.  On August 26, 2013, Globecomm announced that the company entered into a definitive agreement to be acquired by an affiliate of Wasserstein & Co. pursuant to which Globecomm shareholders will receive $14.15 in cash for each share of Globecomm stock.  The merger is expected to close during the fourth quarter of 2013.


Is the Merger Best for Globecomm and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Globecomm is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger.  As an initial matter, the $14.15 merger consideration is substantially below the $18.00 target price set by an analyst at Sidoti & Company, LLC on August 2, 2013.  In addition, the merger consideration is below the target prices of $15.75 and $15.60 set by analysts at Dougherty & Company, LLC and Noble Financial Group, Inc., respectively, on May 10, 2013.  Moreover, Globecomm has traded above the offer price as recently as August 23, 2013, closing at $14.40.

Further, on May 8, 2013, Globecomm released its third quarter 2013 financial results, reporting an increase in net income for the quarter of $4.2 million, compared to $2.9 million from the same quarter of fiscal year 2012.  Further, Globecomm beat analyst earnings per share estimates for the seventh time in the past nine quarters.  In announcing the financial results, David Hershberg, Globecomm Chairman and Chief Executive Officer stated: "Despite several on-going challenges … Globecomm has met our plan for this quarter…  We also have a strong pipeline of infrastructure opportunities within our media segment, which bodes well for the coming fiscal year."

Given these facts, Robbins Arroyo is examining Globecomm's board of directors' decision to sell the company to Wasserstein & Co. now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects, and whether they are seeking to benefit themselves.  

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs