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Watching as the share prices of merger partners Proxim Inc. and Western Multiplex Corp. plummeted close to 50% in February, rival wireless equipment-maker DMC Stratex Networks Inc. launched a hostile $169.5 million all-stock offer for Western Multiplex on Feb. 28.
DMC Stratex, a maker of microwave radios that connect wireless networks and wire line systems offered 0.5215 shares of its stock for each outstanding share of Western Multiplex, which makes wide area networking, or WAN, equipment. Based on the closing price of both companies Wednesday, the bid values Western Multiplex at $2.86 per share, for a 36% premium over Western Multiplex's closing price of $2.11.
Sunnyvale, Calif.-based Proxim, which makes wireless local area networking, or LAN, products, announced a friendly $217 million all- stock merger in January with Western Multiplex, also based in Sunnyvale. Upon completion of that deal, shareholders in Proxim and Western Multiplex would each...