Mergers and Acquisitions Review: Morgan Stanley’s TIME Limit, Mellanox Wants NO Buyout
Morgan Stanley (NYSE:MS) must complete its purchase the remaining portion of Morgan Stanley Smith Barney from Citigroup Inc. (NYSE:C) at a date not later than June 1, 2015 at an implied valuation of $13.5 billion, according to Reuters. This price is apparently a win for Morgan, which bid $9 billion against Citi’s $22 billion offer, while a third party appraiser recently finished its evaluation. Part of the acquisition will be completed in the near term, but Morgan does have until June 2015 to purchase the final 35 percent from Citi at the same valuation.
Although Chief Executive Eyal Waldman of Mellanox Technologies, Ltd. (NASDAQ:MLNX) has been approached several times by potential buyers, the firm prefers to remain independent. Waldman says that Mellanox has a “gentleman’s agreement” with its number one customer Oracle Corporation (NASDAQ:ORCL), that it will not add to its 10 percent investment, whose value has increased quite a lot, and also claims Mellanox’s InfiniBand solutions won’t see any serious threat from competitors such as Intel Corporation (NASDAQ:INTC) for at least 3 years.
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