UPDATE: Citigroup Raises PT on Molex Following Acquisition Announcement by Koch Industries

In a report published Tuesday, Citigroup analyst Jim Suva reiterated a Neutral rating on Molex MOLX, and raised the price target from $30.00 to $38.50. In the report, Citigroup noted, “Monday morning, September 9, Molex announced it would be acquired by Koch Industries (private company) for $38.50/share or $7.2 billion (31% premium to MOLX and 56% premium to MOLXA shares). Importantly the majority of Krehbiel family, who control the privately held super voting shares, have agreed to the acquisition. We do not anticipate a bidding war for two reasons. 1) Both TEL & APH would likely see this transaction as dilutive and we also note the cultures among these three companies are very different. Furthermore, TEL is focused on its internal restructuring efforts and Amphenol acquisitions are generally private or carve out companies.” Molex closed on Monday at $38.57.