Andrew Corp. and ADC Telecommunications Inc. agreed to end their May merger agreement, and Andrew’s board rejected an unsolicited takeover bid from Commscope Inc., Andrew announced Aug. 9.
Andrew will pay ADC $10 million to end the merger agreement and pay ADC another $65 million if Andrew closes a merger agreement or other business combination within 12 months.
"While we still believe in the convergence strategy, the merger of Andrew and ADC was only one method to execute against that," Ralph Faison, president and CEO of Andrew, said in a statement. "We are confident in our ability to address the current and future needs of our customers and shareholders as an independent company.
Commscope announced Aug. 7 that it proposed to acquire Andrew in a deal valued at $1.7 billion. Commscope’s offer of $9.50 per share represented a 36 percent over the $6.97 per share that Andrew’s shareholders would have received under the ADC agreement.
"The board carefully reviewed and considered Commscope’s proposal and found it does not adequately reflect the value of Andrew," Faison said.
