Friday, February 19, 2010

Some Skill Soft and More 3Com

I initiated a position in Skill Soft Plc (Ticker: SKIL) today at $11.08 per share. This company has agreed to be purchased by a bunch of private-equity firms (Bain Capital, Berkshire Partners and Advent International) for $10.80 in cash. Hmm… What’s wrong with the math? I just paid $11.08 and they are offering $10.80!? The market is clearly saying that this company is worth much more than $10.80 per share and a higher bid is expected. These private equity firms are stealing this company from the shareholders. There’s no way this deal goes through at $10.80. Looking for a new bid in the $12.50 - $13 range or else no deal!

Oh, I also added to my 3Com (Ticker: COMS) position at $7.59 per share. I’m still looking at a ~ 20% annualized return with an end of April close. By the way… When are they going to close the IMS Health (Ticker: RX) deal??? Still waiting...


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