Comtech Telecommunications rejects Acacia's $790 mln buyout offer

Acacia Research

25/01/2022 14:29

Jan 25 (Reuters) - Comtech Telecommunications Corp  CMTL.O 
rejected Acacia Research Corp's  ACTG.O  $790 million buyout
proposal on Tuesday, saying the offer "grossly" undervalued the
company.
    Backed by activist hedge fund Starboard Value, Acacia had
offered to buy Comtech, a provider of wireless communication
systems for police and other emergency services, in October.
 urn:newsml:reuters.com:*:nL1N2RS134
    "The proposal grossly undervalues the company and is not in
the best interests of Comtech's shareholders," the company said.
    The bid had come at a time when Comtech was facing pressure
from one of its shareholders, Outerbridge Capital Management
LLC, to explore a sale of the entire company.
    Comtech shares rose 26% on the day when Reuters reported
Acacia's offer for the company, and are down 4.3% since then.

 (Reporting by Chavi Mehta in Bengaluru; Editing by Saumyadeb
Chakrabarty)
 ((Chavi.Mehta@thomsonreuters.com;))