Absence of PolycomTakeout To Be Negative For PLCM Stock
Analysts at William Blair & Co maintain their "market perform" rating on Polycom Inc (NASDAQ: PLCM).
According to a Financial Times article yesterday, Polycom has been in acquisition talks with London-based private equity group Apax Partners since November last year. Speculations are for PLCM to be taken private at $37 a share. “We have no specific insight into the accuracy of the FT report, however, it would be logical to assume that Polycom could be in play as the last freestanding video conferencing provider in its space and after Tandberg sealed the deal with Cisco (NASDAQ: CSCO) last December and is in the process of being acquired,” the analysts say.
“That said, with some potential takeout premium already reflected in PLCM stock and takeout multiples looking rich relative to Tandberg/Cisco, the absence of a deal would likely be negative for the stock in the near term,” the analysts add.
