Motorola Offer Moves to Next Level
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Motorola's tender offer for Next Level Communications is proceeding after the Deleware Supreme Court refused to hear an appeal by Next Level executives to block the $30 million bid.
The plaintiffs argued that Motorola had not given shareholders all the information they needed to vote on the proposed buyout. The cell phone giant already owns a 74 percent stake in Next Level.
"We came to the conclusion that Next Level, like many other small telecommunications equipment providers, would not be able to survive without large cash infusions and a change in its cost structure," Motorola said.
For its part, Next Level, a maker of broadband access equipment hurt by the telecom downturn, reiterated its objections.
"The ruling does not . . . affect our analysis of the economics of the Motorola offer in any respect. We continue to believe that Motorola's offer significantly undervalues Next Level's long-term potential and is not in the best interests of our stockholders."