• 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