Sunday, December 10, 2006

Hit #134 (Agere)

Agere (AGR) is being acquired by LSI Logic in a stock-deal valuing Agere shares at around $22.8, a premium of 106% to my average cost per share of $11.04.

The value of the deal has gone down a bit since the announcement as LSI shares pulled back. While the price paid may be high, the combination will be a strong player in a number of markets, and will be in a position to compete against the likes of Marvell (MRVL).

Marvell shares themselves have gotten cheap over the last few weeks, and I have opened a small position since I see a potential for a management-led buyout.

Previous hit - Mellon Financial (#133)


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