Gilat (GILT) Acquired: Where Did You Hear it First?
Written by: Aaron Katsman | March 31, 2008
Aaron Katsman
www.IsraelNewsletter.com
Today’s news that Gilat Satellite Networks (GILT) is going to be acquired for $11.40 a share, should come as no surprise to IOI readers. We hate to brag, but we called this one a while back. This continues the IOI trend of predicting M&A, as we called the ECI Telecom deal as well. Maybe it’s time that you subscribe to our premium product( Subtle huh).
The price is about a 10% premium to Friday’s closing price.
The investor group includes Mivtach Shamir, The Gores Group LLC, DGB Investments Inc. and companies affiliated with Roy Ben-Yami, Ami Lustig and Eytan Stibbe.
While I thought that the company should remain independent and continue to grow, for the company and large investors, the deal was too good to pass up.
For merger arbitrage investors, keep your eye on how Gilat trades over the next few months. With the deal set to be completed in September, any weakness in the stock could make for an interesting play. After all a potential 6-10% return in 5 months, is nothing to sneeze at, especially in markets that can’t seem to go up.
Disclosure: Author’s fund holds a position in GILT. He holds no position in any other stock mentioned as of 3/31/08.
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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
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