The Successful Investor Hotline – Friday, April 17, 2009

Article Excerpt

GENNUM CORP., $4.80, Toronto symbol GND, fell 9% on Friday after it increased its friendly takeover bid for Ottawa-based Tundra Semiconductor Corp. (Toronto symbol TUN). Like Gennum, Tundra makes chips and components for computer networking hardware, like modems and routers. Gennum’s products also let TV broadcasters store, edit and transfer video signals without losing picture quality. Gennum has increased its bid by 30%, and is now offering $112 million in cash and stock for Tundra. Two-thirds of Tundra’s shareholders must vote in favour of the deal at a special meeting on May 8. If they do, Gennum plans to close the purchase by June 1. Several of Tundra’s institutional investors opposed Gennum’s first offer. Because Tundra has no single controlling shareholder, they could have teamed up to block it. Their opposition prompted Gennum to raise its offer. To put the new purchase price in context, Gennum lost $800,000 U.S., or $0.02 U.S. a share, in its first fiscal quarter, which ended…