Is Avaya up for grabs?
Shares jump as tongues wag over possible buy-out
Avaya has seen its shares rocket by more than 15 per cent amidst speculative reports that a takeover bid for the network firm is imminent.
The market capitalisation of the firm shot up to just over $7bn after Avaya postponed its annual Wall Street analysts' meeting which was originally set for today.
The Financial Times said that the decision by the firm's board to delay the meeting pointed the finger toward the likelihood of a buy-out.
The network firm is in a strong position in what is seen as a mushrooming telecoms market with high demand from businesses wanting to switch from analogue to IP-based systems.
Prudential analyst Inder Singh told the FT that possible firms in the picture for a take-over bid could include the likes of rivals Cisco or Nortel.
But speculation suggested a lucrative offer from a private equity firm could also be in the offing.
Avaya shares closed at $15.76 on the New York Stock Exchange, up 15.2 per cent. ®