Ceragon Networks surges on Aviat's buyout offer

Ceragon Networks

27/06/2022 23:04

** Shares of Ceragon Networks Ltd  CRNT.O  rise 23% to $2.57
after the bell
    ** Peer Aviat Networks  AVNW.O , which disclosed a 5% stake
in CRNT as of June 24, offered to acquire the rest of the
company for $2.80 per share in cash  urn:newsml:reuters.com:*:nFWN2YE0U5
    ** The offer price represents a premium of ~34% to CRNT's
last close
    ** Aviat, which is CRNT's third-largest shareholder, calls
for extraordinary general meeting of Ceragon shareholders to
elect new directors to evaluate proposal
    ** "Over the past year, we have sought to engage on numerous
occasions with Ceragon's board and management team to negotiate
terms for a transaction" - Aviat CEO Peter Smith
    ** "They refused to engage with us in constructive
discussions, instead making further demands for unorthodox and
off-market provisions that seem intended only to delay, leaving
us with no other option but to make Ceragon shareholders aware
of our proposal" - Smith
    ** AVNW down 1.5% in after market trading


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