Sunday, November 06, 2005

Hit #66

Verity (VRTY) is being acquired by Autonomy for around $500 million in cash. This offer, of $13.5/share is a 19% premium over my average cost of $11.32/share.

I first mentioned Verity as a strong takeover candidate here. My best guess at that time was that Yahoo would be a likely buyer. Given its cash position, Verity could have commanded a higher price, but emerging competition from Google and Yahoo meant that it would be bargaining from a weak position.

The combined entity following this merger would still be a long-term target for Yahoo, but since Autonomy is not listed in the US anymore, there isn't a direct way to play it.

Previous hit - Central Coast Bancorp (#65)


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