ZOM’s $ 14.7 billion (approximately $ 1,09,280 kroner) call center software company Five 9 focused on expanding, analyzing, and expanding through the investment bank in the next round of virtual conferences.
The zonal bid refused to add cash and pay for the five-point deal only on the stock as a currency, with shares returning 29 percent in the weeks following the announcement of the deal in July. As the COVID-19 epidemic declines, physical meetings disrupt business.
Last week, five of the nine shareholders rejected the deal.
Investment bankers and analysts say that once the epidemic is over, investors will be able to predict the future of their businesses. This, he said, will reduce the chances of Zom shares gaining more interest in the near future.
Zoom has almost no debt but by the end of July it had $ 2 billion (approximately 14,865 kroner) in cash alone, which it wants to support growth initiatives.
“Zoom needs to know how to keep some customers who don’t want to be registered as private subscribers when they return to extra physical life,” said Wolf Research analyst Alex Zuckin.
Zoom refused to comment.
Another obstacle that could lead to the next company attracting zombies is its relationship with China. At the request of the Chinese government, US prosecutors filed a video of the 31st anniversary of the Tianmen Square massacre last year, accusing a Chinese-based Zom executive.
The US Department of Justice said in a statement last month that it was “reviewing” five of the nine zones that “endanger national security or law enforcement interests.”
Prior to the completion of this review, when five 9 shareholders opted for the Zom deal, analysts were exposed to the risk of further interference in the minds of other acquisition targets.
The US government may conduct a thorough investigation into transactions involving engineering talent or other companies in China, ”he said.
Activist Fence Money
Agula Call Center software seeks to find ’99 ‘used by more than 2,000 companies around the world to connect with their customers. While there has been no change, some investors have said that Zom’s shareholders may be worried about the company’s reliance on virtual conferences.
According to Diane McKaver, Chief Investment Officer of Investment Company AIDS Capital Management, an activist fence fund may want to take advantage of the situation by mobilizing a stake in Zom and pushing for change.
“When an agreement is broken, it often creates short-term, long-term investment opportunities,” he said.
There are many examples of companies that have angered investors after thwarting acquisitions. Hedge Fund TCI Fund Management, one of the largest investors in the Canadian National Railway Company, has invested $ 29 billion (approximately Rs.) In the downfall of Kansas City.
Activist Fence Fund Starbu Valu LP and Eliot Management Corporation’s acquisition of $ 30 billion (approximately $ 2,22,970) in Willis Towers Watson with insurance broker Ion was terminated earlier this year due to opposition from U.S. regulators.
To be sure, zombies can be expensive for some activists, analysts say. It is unknown at this time what he will do after leaving the post.
Still, a failed deal could be interpreted by some investors as a sign that the company’s board could not open more prices, said Lawrence Elba, chief executive of law firm Vinson and Elkins.
“This will immediately expose their board seats to an activism campaign,” Elba said.
Thomson Reuters 2021