Miranda Technologies Soars on Sale to Belden
Miranda Technologies Inc. (MT) jumped the most since the company was publicly listed in 2005 after the Montreal-based maker of broadcasting equipment agreed to be bought by competitor Belden (BDC) Inc.
Miranda jumped 64 percent to close at C$16.87 in Toronto, its biggest increase since the company was listed on Dec. 8, 2005. That was short of the C$17 a share buyout price offered by Belden. Miranda closed at C$10.25 yesterday, below its initial public offering price of C$11.25.
Belden, based in St. Louis, Missouri, today agreed to make an all-cash offer for Miranda, which Miranda said was 42 percent more than the volume-weighted average price of C$11.99 in the 90 days through yesterday. Belden said it isn’t planning to make any changes to Miranda’s activities, including research-and- development and manufacturing operations in Montreal.
“This is a fantastic deal for Miranda’s shareholders,” Kris Thompson, an analyst at National Bank Financial in Toronto, said in a note to clients. Thompson recommends investors sell their shares to Belden “as we do not expect a superior bid and we expect Miranda’s future operating performance to come under pressure in a challenged sector.”
Miranda said March 21 that it had received expressions of interest and was planning to hold discussions with potential strategic partners.
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