Altium Limited (ASX: ALU) is one of the top technology firms on the ASX. They are a software company that provides electronic design software. These design tools are required and used all over the world by any company that manufactures printed circuit boards (PCB), and these PCBs are used in everything electronic. Given that the USA and China are the largest markets – both in terms of manufacturing and consumption of PCBs and electronic devices, Altium’s revenues are very dependent on them.
A little over a month ago, Altium shares surged on the back of an announcement regarding a takeover offer that company received from Autodesk. Altium received a formal, non binding, indicative, and unsolicited takeover offer. The takeover offer for 100% of Altium was for $38.5 a share – a then 41% premium over ALU shares. The bid, however, has been rejected by Altium’s board as the company revealed that they find the offer undervalued.
There has been no news regarding an improved offer for ALU, however speculation has been high in this M&A boom we find ourselves in the midst of. Responding to market speculation, Altium today announced that they have not received any further offer from Autodesk. The impending market reaction was extremely negative. ALU shares declined by 3.78% today. At close, ALU shares traded at $35.17 a share, well below Autodesk’s valuation of ALU shares.
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