Chris Frankie
Western Multiplex(WMUX Quote - Cramer on WMUX - Stock Picks) and Adaptive Broadband(ADAP Quote - Cramer on ADAP - Stock Picks) have agreed to scrap their merger agreement, citing uncertainty in the market and weakness in the fixed wireless industry.
Western Multiplex, a broadband wireless access provider, and Adaptive Broadband, a data transmission communications equipment supplier, first announced the merger in November. Shares of both companies have fallen significantly since then. Adaptive, which was valued at $17.15 a share under the merger agreement, was trading at $3.22 recently on the Nasdaq. "From a stock market point of view, fixed wireless specifically, and telecommunications stocks, in general, have really taken a beating, making it very difficult to put a monetary valuation on this transaction at this time," Adaptive said in a statement. Shares of Adaptive, which recently lowered its expectations for second-quarter revenue, fell 31 cents, or 8.9%, to $3.22 in recent Nasdaq trading. Western Multiplex gained $1.44, or 21.5%, to $8.13. Additionally, Adaptive Broadband accelerated a management transition plan. Daniel L. Scharre has been named president and chief executive and joins the board immediately. Frederick D. Lawrence is retiring immediately from the company rather than in July, as planned, and has resigned as chairman. Leslie G. Denend, currently a member of the board, will become chairman. The company also named Peter J. Maloney, Adaptive's senior vice president of finance, to the post of chief financial officer. He will succeed Donna S. Birks, who is also retiring earlier than she originally planned.
RSS
