Monday, February 12, 2007

Hit #143 (Keane)

Keane (KEA) is being bought by privately-held Caritor for $854 million in cash. The offer, of $14.3/share represents a measly gain of 5.4% over my average cost of $13.56.

Caritor is a name I have never heard of before! Apart from the buyer being small and unheard of, the deal is also interesting in that Keane seems to have sold itself short. Keane should have fought for and received a better price.

I did mention Keane in the past, though my list of prospective buyers for Keane was completely different.

While on IT service providers, major federal/defense service providers like SRA International (SRX), SI International (SINT), MTC Technologies (MTCT) and the recent IPO, SAIC (SAI), are looking very attractive. Expect defense biggies like General Dynamics, Raytheon and Northrop Grumman to make moves.

Previous hit - Longview Fibre (#142)


Post a Comment

<< Home