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Marvell Technology Group

(Nasdaq:MRVL) plunged 15% last night on Wall Street to an all-time low of $17, 80% below its price at the time of agreeing to acquire

Galileo Technology

(Nasdaq:GALT) six weeks ago in a stock deal.

As happened when

Lucent Technologies

(NYSE:LU) agreed to buy Israeli startup

Chromatis Networks

, Marvel's stock began to drop sharply shortly after the deal was finalized. Lucent paid for Chromatis in shares, worth $4.5 billion on signing in June, and $1.6 billion mere weeks later.

But as the lock-up terms undertaken by Galileo shareholders are unknown, it is hard to say whether they are still holding the Marvell stock received in return for their Galileo stock, or whether they have already sold them at higher prices.

Based on Marvell's value at closing Tuesday night, $1.5 billion, the Marvell-Galileo deal is worth $600 million. When the official announcement was made in mid-October the deal was worth $2.7 billion. At that time, Marvell was trading at a market cap of $7 billion.

Lock-up issues are also the main reason for the sharp drops in Marvell's stock tonight, at least according to CBSMarketWatch, which claims that the big sellers were substantial shareholders who have released stock to the market immediately following the ending of the lock-up period after the company's IPO on June last.

During trade yesterday Marvell stock plunged to a low of $15.5, but cut its loss somewhat to end at $17.