Wednesday, August 02, 2017

Bought MRV Communications, Inc.

I initiated a position (~7.4% position) in MRV Communications, Inc. (Ticker: MRVC) at $9.95. MRV Communications is being acquired by a German company, ADVA Optical Networking SE for $10.00 in cash. This deal is being structured as tender offer with the tender expiring on 08/11/17. I am modeling that this deal closes on 08/11/17 with the cash hitting the account by 08/18/17. This would generate a net gain of 0.50% (~10.6% annualized return).

12 Comments:

At August 03, 2017, Anonymous Anonymous said...

nice little snack!

 
At August 03, 2017, Blogger Money Turtle said...

Yes, I'll take a bunch of the little snacks!

 
At August 05, 2017, Anonymous Anonymous said...

MT,

I am curious what your brokerage charges you if anything to have your shares liquidated for cash after the tender has closed and is processed.

Regards,

inforesource7
from the yahoo message boards years and years ago

 
At August 05, 2017, Blogger Money Turtle said...

My broker does not charge any fees for participating in a tender offer.

 
At August 07, 2017, Anonymous Anonymous said...

MT,

I checked with my broker and no charge for tender offers for me either. I assume you have a commission to buy the shares you plan to tender. If so do you factor that in to your returns? I have never tendered shares before and you have been through many tender offers. Without going into great detail,
Once you commit to tendering your shares, what happens if you change your mind? Is there flexibility to uncommit so to speak? Some of these tender offers get extend multiple times (ie. NXPI). Are the tender share count results reported along the way and if so where does one learn the numbers from? What happens to call and put options in the money at the end of the tendering process?

I find whats playing out with NXPI and Elliot taking a large stake fascinating. Back in January many of us thought Qualcom's offer was a steal. Looks like Elliot had a plan all along to try and make them pay more. The small Shareholders have a advantage this time. The big hurdle is the foreign regs. approval process.

Thoughts on NXPI?

Regards,

Inforesource7

 
At August 07, 2017, Blogger Money Turtle said...

Infosource7: I do factor in commission in determining the total return. Commission rates are so low these days, it's almost negligible.

You can usually withdraw the shares you have tendered if for some reason you change your mind. It may take a couple of days for the tendered shares to return to your account. Companies usually report the number of shares tendered when there is an extension of the tender offer or at the close of the tender offer. There is no running tally of the number of shares tendered as that is closely held info by the company.

The expiration of options will be accelerated based on the anticipated closing of the deal. The expiration of the options will be cash settlement.

NXPI: Looks like Qualcomm will be forced to bump the price. If shareholders reject the deal, NXPI should hold up fairly well.

 
At August 10, 2017, Anonymous Anonymous said...

when MBLY cash will hit my account? tender succefull 7 august but still I don't see the money

 
At August 10, 2017, Blogger Money Turtle said...

MBLY: I would check with your broker. They have an estimated date (swing date) of when the funds will hit your account.

 
At August 18, 2017, Anonymous Anonymous said...

the cash didnt hit my account today.. will it monday?

 
At August 18, 2017, Blogger Money Turtle said...

MRVC: I received the cash yesterday (8/17).

 
At August 19, 2017, Anonymous Anonymous said...

is it because you tendered your shares? i have fidelity and don't see the money yet.
p.s reCAPTCHA is very annoying

 
At August 19, 2017, Blogger Money Turtle said...

Yes, I tendered my MRVC shares. You will generally receive the cash quicker when you tender.

 

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