Ceragon Networks (NASDAQ:CRNT) stock is rising higher on Tuesday following news of an acquisition deal with Aviat Networks (NASDAQ:AVNW).
Aviat Networks seeks to acquire Ceragon Networks for $2.80 per share. That’s a roughly 34% premium compared to the stock’s closing price on Monday. It’s also worth mentioning that Aviat Networks is the third-largest shareholder of CRNT stock with a 5% stake in the company.
Aviat Networks also notes that it’s willing to change this offering to include a portion of it as AVNW stock. It says this would allow current CRNT shareholders to benefit from the upside potential the two companies would have.
It’s worth noting there’s more to this offering than just a simple acquisition deal. Aviat Networks has been unsatisfied with the current management team at Ceragon Networks and is seeking change.
This saw the company suggesting the expansion of Ceragon Networks’ Board of Directors. It wants to bump the number of members up to nine from seven. To go along with that, it’s seeking the removal of three current directors and has suggested five new directors for the Board.
CRNT investors are reacting positively to today’s news with heavy trading of the stock. This has more than 6 million shares of the company’s stock changing hands as of this writing. That’s well above its daily average trading volume of about 456,000 shares.
CRNT stock is up 22.7% as of Tuesday afternoon.
There’s more recent stock market news that investors will want to know about below!
InvestorPlace has all of the latest stock market news that traders need to know about for Tuesday! A few examples include what’s happening with shares of Li Auto (NASDAQ:LI), Wejo (NASDAQ:WEJO) and casino stocks today. You can find out more on these matters at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
