The Lemon Fool

Spirent Communications, having fallen rather badly through 2023, has become a takeover target. The share price has risen to around that of the higher of two offers, namely 199p per share. Which would represent a moderate profit for me, but well short of what it should be worth.

My view: it's tied to the politics of 5G, and the fallout from our fifth-columnists' doing Trump's bidding in support of America First. It seems likely that has now more-or-less worked through the system, so the future direction should tend to be upwards - and bidders presumably share that view. So I'm inclined to hold out for a better bid. Or sit on my hands if that doesn't happen.

Any thoughts?

SPT is no ARM, but must surely be one of the most important remaining tech stocks with a London listing!

UncleEbenezer wrote:Spirent Communications, having fallen rather badly through 2023, has become a takeover target. The share price has risen to around that of the higher of two offers, namely 199p per share. Which would represent a moderate profit for me, but well short of what it should be worth.

My view: it's tied to the politics of 5G, and the fallout from our fifth-columnists' doing Trump's bidding in support of America First. It seems likely that has now more-or-less worked through the system, so the future direction should tend to be upwards - and bidders presumably share that view. So I'm inclined to hold out for a better bid. Or sit on my hands if that doesn't happen.

Any thoughts?

SPT is no ARM, but must surely be one of the most important remaining tech stocks with a London listing!

Tbh It doesn’t matter how you vote because the takeover will happen regardless if the large institutional holders wish it to be so. By all means vote against if it makes you feel better, but just don’t be disappointed when the vote goes through. Unless a higher offer appears, it’s a done deal.

simoan wrote:

UncleEbenezer wrote:Spirent Communications, having fallen rather badly through 2023, has become a takeover target. The share price has risen to around that of the higher of two offers, namely 199p per share. Which would represent a moderate profit for me, but well short of what it should be worth.

My view: it's tied to the politics of 5G, and the fallout from our fifth-columnists' doing Trump's bidding in support of America First. It seems likely that has now more-or-less worked through the system, so the future direction should tend to be upwards - and bidders presumably share that view. So I'm inclined to hold out for a better bid. Or sit on my hands if that doesn't happen.

Any thoughts?

SPT is no ARM, but must surely be one of the most important remaining tech stocks with a London listing!

Tbh It doesn’t matter how you vote because the takeover will happen regardless if the large institutional holders wish it to be so. By all means vote against if it makes you feel better, but just don’t be disappointed when the vote goes through. Unless a higher offer appears, it’s a done deal.

BTW in case it’s not clear, I’m in the same position. I bought SPT as a quality long-term play on 5G rollout and unfortunately it didn’t work out, mainly due to an industry wide slowdown rather than company specific issues. As such, I am considering rolling over my investment into Keysight if the sale goes through. Clearly the acquisition is at a good price for Keysight and they have similarly high quality metrics and one less competitor for 5G contracts in future. They also have a strong balance sheet and can easily afford the acquisition.

simoan wrote:BTW in case it’s not clear, I’m in the same position. I bought SPT as a quality long-term play on 5G rollout and unfortunately it didn’t work out, mainly due to an industry wide slowdown rather than company specific issues.

Indeed. A minor casualty of our government's treachery.

As such, I am considering rolling over my investment into Keysight if the sale goes through. Clearly the acquisition is at a good price for Keysight and they have similarly high quality metrics and one less competitor for 5G contracts in future. They also have a strong balance sheet and can easily afford the acquisition.

Thanks for the thought. I took a cursory look, and I might very well do the same. But no need to decide quite yet.