Covad, Public No More (DVW)

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Platinum Equity has announced that the private equity firm has now completed the acquisition of Covad Communications Group, Inc. (AMEX: DVW) in a merger with a total value of approximately $470 million.  An affiliate of Platinum Equity acquired all outstanding shares of Covad stock for $1.02 per share in cash.

This was one we reviewed for our special situation newsletter last year for what would have now netted close to 30% to completion when the spread had widened out to the point it looked at risk.  We determined after speaking with all parties involved that the deal was not in jeopardy, but the sector was in a "shoot and ask questions later" mode as many other deals were failing.

We also just covered this one last month with more than a 10% gain for 3-weeks to completion in our "10 Stocks under $10" weekly newsletter.

This merger looks like it is done, over and out.  You can join our open email distribution list to hear about key M&A, merger speculation, IPO’s, special financings, restructurings and more.

Jon C. Ogg
April 15, 2008

Jon Ogg produces the Special Situation Investing Newsletter.  He can be reached at and he does not own securities in the companies he covers.