Banking, finance, and taxes
Platinum's Buyout of Covad Set To Close (DVW)
Published:
Last Updated:
As we have been expecting, Covad Communications Group Inc., (AMEX:DVW) announced that it has obtained all of the required regulatory approvals for it to be acquired by an affiliate of private equity firm Platinum Equity.
This deal had already been approved by shareholders, and now it has secured approval from the FCC and a number of state public utility commissions. Covad expects that its $1.02 all-cash buyout is expected to close on April 15, 2008.
We recently reviewed this transaction for what we felt was a safe bunt for a 10% return in our "10 Stocks Under $10" newsletter, and we also covered this one with an "all-clear" signal from both Platinum and Covad when the spread widened out to more than 25% and it looked like an at-risk deal.
Shares of Covad closed at $0.95 yesterday and are indicated up at $0.98 this morning.
Jon C. Ogg
March 26, 2008
Jon Ogg produces the Special Situation Investing Newsletter and can be reached at [email protected]; he does not own securities in the companies he covers.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
