Is the sale of Gilat Satellite Networks (Nasdaq: GILTF; TASE: GILTF) in doubt? Shares in the company fell 17% on high volume on Nasdaq yesterday, so that they opened on the Tel Aviv Stock Exchange (TASE) this morning with an arbitrage gap of 16.6%. Sources inform ''Globes'' that the company's buyers are seeking to bring down the price per share for the deal, which is currently $11.40.
The consortium comprises: Mivtach Shamir Holdings Ltd. (TASE:MISH); private equity group Gores Group LLC; Roy Ben-Yami, Ami Lustig, and Eytan Stibbe, the owners of LR Group; and DGB Investments, a company owned by VeriFone Holdings Inc. (Nasdaq: PAY; TASE: PAY) CEO Douglas Bergeron.
Gilat, which is managed by Amiram Levinberg, produces very small aperture terminals and peripherals for satellite communications. It was reported five months ago that the company was to be sold to a group of Israeli and US investors for $475 million. The company's maket cap is currently $361 million. Gilat's shareholders approved the deal in early July, and the company said it did not expect any delays in obtaining regulatory approval for the deal, which is due to close by September 28.
So far, neither side has put out an official announcement.
Published by Globes [online], Israel business news - www.globes-online.com - on August 14, 2008
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