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Marvell Buys Cavium, Shares Go Parabolic

November 28th, 2017 · No Comments

  • Shareholders of the acquiring firm were unusually jubilant, suggesting they see enormous benefits of Marvell’s acquisition of Cavium.
  • Benefits on top of an already substantial premium Marvell is paying for Cavium.
  • We think this is a little over the top. More often than not, M&A activity fails to create shareholder value.
  • And the acquiring company’s shares usually fall, not rise on the news.

Source: Marvell Buys Cavium, Shares Go Parabolic – Cavium Networks, Inc. (NASDAQ:CAVM) | Seeking Alpha

Tags: MRVL