NEW YORK (TheStreet) -- Affymetrix (AFFX) stock is down by 5.43% to $14.12 on heavy trading volume on Monday, after the company announced its board recommended against a takeover offer from OriginTechnologies.
The life science products provider announced on Monday that Origin's takeover proposal was not a "superior proposal" compared to Thermo Fisher Scientific's (TMO) $1.3 billion takeover offer earlier this year. Origin is a genomics company that was recently created by former Affymetrix executives.
The company's board recommends against the Origin proposal, Affymetrix said in a statement. Origin's offer includes several risks and relies on third-party financing, which depends on regulatory approval in China, according to Affymetrix.
Affymetrix shareholders will vote on the Thermo Scientific acquisition on March 31.
The company's agreement with Thermo Fisher "outweighs the putatively higher premium but significantly greater uncertainties associated with a potential transaction with Origin," CEO Frank Witney said in a statement. "We look forward to putting the matter before our stockholders and proceeding with our merger."
So far today, 5.16 million shares of Affymetrix have traded, well above the company's 30-day average of 1.83 million shares.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.
You can view the full analysis from the report here: AFFX