by Christopher Freeburn | October 21, 2013 10:58 am
Shares of Tellabs (TLAB) climbed more than 4% in Monday morning trading after the company agreed to be acquired.
Marlin Equity Partners will pay $2.45 a share, a 4.3% premium over the struggling telephone equipment manufacturer’s Friday closing price. The deal, which is expected to be close before the end of the year, is valued at about $891 million, Bloomberg noted.
Tellabs produces equipment for telephone networks. The company is attempting to introduce new products for wireless phone systems, migrating away from its traditional phone-network switch business. The board had sought offers from more than 30 potential suitors.
Last year, its CEO passed away after a battle with cancer and its chairman resigned due to medical issues.
Tellabs has posted 11 consecutive quarterly losses.
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