What to do with RuggedCom

Article Excerpt

RUGGEDCOM INC. $25.31 (Toronto symbol RCM; TSINetwork Rating: Speculative) (1-888-264-0006; www.ruggedcom.com; Shares outstanding: 12.6 million; Market cap: $318.9 million; No dividends paid) is still the target of a hostile takeover bid from U.S. cable and networking equipment manufacturer Belden Inc. RuggedCom makes computer-networking equipment that is used in harsh environments. Belden recently reaffirmed its offer of $22 in cash for each RuggedCom share. RuggedCom feels that Belden’s offer is too low, and has advised shareholders to reject the bid. The company is looking for other buyers. RuggedCom is now trading at $25.31 a share, or 15.0% above Belden’s bid. This indicates that investors are anticipating a higher offer from Belden or another bidder. We’ll say more as the takeover progresses. For now, RuggedCom is a hold. hold…

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