UPDATE: Stifel Nicolaus Downgrades LeCroy Corporation to Hold Post Acquisition

Stifel Nicolaus reduces its rating on LeCroy Corporation

from Buy to Hold and suspends its PT to $14. Stifel Nicolaus says, "On May 29th before the market open, LeCroy announced it entered into a definitive agreement to be acquired by Teledyne (TDY, Buy, $60.62, covered by our colleague Steve Levenson) for $14.30 a share in cash. The purchase price represents a premium of 56% to LeCroy's closing price last Friday of $9.14, a total purchase price of $246 million, and an aggregate value of $291 million when taking into account stock options, net debt, and stock appreciations rights. The transaction is expected to close in the next 60-90 days, subject to U.S. antitrust approval. We find the valuation compelling, viewing Teledyne as an attractive strategic fit for LeCroy, and are downgrading shares to Hold as the purchase price exceeds our price target and we see another bidder emerging as a low probability event." LCRY closed at $14.20 on Tuesday.