Nasdaq-listed network equipment manufacturer Viavi Solutions (NASDAQ:VIAV) Inc will consider making another bid for Spirent Communications (LSE:SPT) if an agreed-upon Keysight Technologies Inc (NYSE:KEYS) takeover fails to pass muster with the competition watchdog, Reuters has reported.
Viavi was gazumped by Keysight in March with a 201.5p per share offer for FTSE 250-listed Spirent, beating out Viavi’s previous 175p-per-share offer.
Although Spirent shares surged following Viavi’s superior offer, they are currently trading below 175p, representing a 13% discount to the improved offer.
Sources told Reuters that some analysts believe this discount reflects a degree of scepticism that the deal will go through.
Company shares typically rally to match their implied valuation when a takeover offer is declared.
In half-year results posted in August, Spirent disclosed that order intake fell more than 20% year on year, reflecting “some customer hesitancy following the recently announced offer by Keysight” as well as “the ongoing industry-wide slowdown”.
“Keysight and Spirent continue to engage and work constructively with the relevant regulatory authorities in order to satisfy all necessary regulatory conditions,” the company stated.