Shares of both companies fell Monday after Marvell said it reached an all-stock agreement to buy Lumentum.
Marvell and Lumentum shareholders unite in panning merger deal: ‘It’s a trash offer’
In short
Marvell stated that it reached an all-stock agreement to buy Lumentum, sparking strong joint disapproval from investors. Following the takeover announcement, shares of both companies fell on Monday as shareholders panned the proposal. Investors criticized the business combination bluntly, with one remark describing the buyout bid directly as a trash offer.
Key points
- The all-stock acquisition proposal faced immediate joint backlash from both shareholder b…: The all-stock acquisition proposal faced immediate joint backlash from both shareholder bases.
- Market reactions drove down equity values for both companies on Monday trading.: Market reactions drove down equity values for both companies on Monday trading.
- Dissatisfied investors openly characterized the buyout proposal as a trash offer.: Dissatisfied investors openly characterized the buyout proposal as a trash offer.