Aug. 29 (Bloomberg) -- Alvarion Ltd., the Israeli maker of wireless communication equipment that sank 81 percent this year, rose to the highest in a week in New York after requesting court approval for a buyout by Valley Telecom Ltd.
Shares of Tel Aviv-based Alvarion soared as much as 38 percent to 87 cents, and traded at 69 cents at 2:22 p.m. in New York. Trading volume was triple the average of the past 90 days. It climbed 8.8 percent to 2.85 shekels in Tel Aviv.
Yoav Kfir, the court-appointed receiver for Alvarion, has asked the court to approve Valley Telecom’s bid to buy Alvarion, according to a statement today. The bid will probably be approved on Sept. 2, Kfir said.
“It seems like a very good solution for the company, because it will stay in business and will remain a listed company,” he said by phone from Tel Aviv today. Alvarion has already stopped losing money and is at a turning point as “Valley Telecom will get it to a better place,” Kfir said.
Nasdaq issued the company with a delisting notice after its shares dropped below the minimum bid requirement of $1, Alvarion said on May 1. The stock needs to trade at least $1 for a minimum 10 consecutive business days by Oct. 23 for the company to remain in compliance with the exchange’s rules, according to the statement.
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