Adtran stock tumbles after $931 million stock deal to buy ADVA

3 weeks ago 17
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Shares of Adtran Inc. ADTN, -16.52% tumbled 14.5% successful greeting trading Monday, aft the networking and communications institution announced an statement to get networking services institution ADVA successful a woody valued astatine EUR789 cardinal ($931.1 million). Under presumption of the deal, each ADVA shares volition beryllium exchanged for 0.8244 shares of the banal of the caller holding company, which values ADVA shares astatine EUR14.84 each, oregon a 22% premium to the three-month measurement weighted mean terms implicit the past 3 months. Each Adtran stock volition beryllium exchanged for 1 stock of the caller holding company. The combined institution volition beryllium named Adtran Holdings Inc., with its planetary office located successful Huntsville, Alabama and European office successful Munich, Germany. "We are successful the aboriginal stages of an unprecedented concern rhythm successful fibre connectivity, particularly successful the U.S. and Europe, fueled by the request for last-mile fibre entree and middle-mile transport to supply high-speed connectivity to homes, businesses and aboriginal 5G infrastructure," said Adtran Chief Executive Thomas Stanton. "By joining forces, our combined firm's portfolio volition amended presumption america to capitalize connected this highly compelling planetary opportunity." Adtran's stock, which closed astatine a six-year precocious connected Friday, was connected way to endure the biggest one-day driblet since October 2019. It has inactive rallied 42.2% twelvemonth to date, portion the S&P 500 SPX, +0.57% has precocious 20.7%.

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