Comtech Telecommunications Corp. [CMTL] last week rejected a $790 million offer from investment firm Acacia Research Corp. [ACTG] to take over the company.
In October, Acacia made $30-per-share offer to acquire the location services provider after a failed merger with Gilat Satellite Networks. At the time, a Reuters news article said that the company felt pressure to sell the company from one of its shareholders, Outerbridge Capital Management LLC.
However, after months of negative crosstalk, it appears that Comtech and Outerbridge, which owns 4.9 percent of the company’s stock, have agreed on who will be on the location company’s board of directors.
The corporate story changed dramatically over the past few weeks as new Comtech CEO, Michael Porcelain, said “it has become clear that Outerbridge is a knowledgeable and engaged shareholder seeking to enhance value for all stakeholders.”
Overall, the company’s board of directors said that the Acacia proposal “grossly undervalues the [company] and is not in the best interests of Comtech’s shareholders.” Comtech also said that it has made strategic investments that allow it to capitalize on “large, long-term renewal cycles in the 911 public safety and satellite and space communication markets.”