$LITE and $MRVL redefine what it means to be a “powerful combination”
After the merger was officially announced on November 2, shares in both companies fell instead of rising.
MRVL fell about 12.72%, while $LITE fell about 18.59%.
Why is the market unimpressed?
Mainly because this is an all-stock deal. Lumentum shareholders can exchange each of their shares for 4.5 shares of Marvell stock. Once the merger is complete, former Lumentum shareholders will own about 33% of the new company. The ownership stakes of existing Marvell shareholders have been significantly diluted.
Capital only looks at the immediate gains, not the long-term story.
#美国中期选举倒计时，美股博弈窗口已开启？
After the merger was officially announced on November 2, shares in both companies fell instead of rising.
MRVL fell about 12.72%, while $LITE fell about 18.59%.
Why is the market unimpressed?
Mainly because this is an all-stock deal. Lumentum shareholders can exchange each of their shares for 4.5 shares of Marvell stock. Once the merger is complete, former Lumentum shareholders will own about 33% of the new company. The ownership stakes of existing Marvell shareholders have been significantly diluted.
Capital only looks at the immediate gains, not the long-term story.
#美国中期选举倒计时，美股博弈窗口已开启？
