OmniVision Shares Fall Past Takeover Announcement Price; Benzinga Attempts Get Status On Takeover Deal

On August 14, OmniVision Technologies Inc. OVTI announced that the company had received a non-binding proposal from Hua Capital Management Ltd. to which a group of investors proposed to acquire all of OmniVision’s outstanding shares for $29.00 in cash.

Following the announcement, shares of OmniVision rose 15 percent to 28.29 where it closed the trading session on August 14.

Since the announcement, OmniVision shares traded sideways for a few weeks but failed to hold the $26 level which appeared to be short term support.

Shares then continued to tumble and filled the gap that was created from the announcement as the stock price broke the $25 level.

Currently, shares of OmniVision are trading at $23.40; well below the stock price prior to the takeover report.

The selling pressure may be due to the lack of communication on the takeover deal, as investors are possibly becoming impatient with the company’s inability to update shareholders on the status of the deal.

In order to get an update, Benzinga reached out to the company several times over the past three weeks. After multiple phone call attempts; Benzinga is still waiting to receive a call back from the company’s Investor Relations.

Moreover, Benzinga has sent emails to company executives and is yet to receive any replies.