CommScope to acquire wireless major Andrew Corp

28 June 2007

The $2.6-billion acquisition of Andrew Corp by networking equipment maker CommScope Inc, announced yesterday, is expected to consolidate the US telecommunications sector.

The deal is expected to close by the end of the year subject to the approval of Andrew shareholders and antitrust regulators. Upon completion of the deal, Andrew will become a wholly owned subsidiary of CommScope.

Almost 12 months after rejecting an earlier bid by Comm­Scope in favour of remaining independent, Andrew said it had agreed to be bought by CommScope for $15 per share, 58 per cent higher than the $9.50 per share that CommScope had offered last August.

The price represents a 16-per cent premium to Andrew''s closing price on Tuesday and 18 per cent above the peak value of a May 2006 stock-swap offer from ADC Telecommunications Inc.

Andrew''s agreement with ADC fell apart after the latter''s share value fell sufficiently for CommScope to step forward in August 2006 with a higher offer of $9.50 per share, but not high enough for Andrew to agree.

Under the terms of the new agreement, each Andrew share will be converted into $15, composed of $13.50 in cash and an additional $1.50 per share in either cash, CommScope stock or a combination of cash and stock, at CommScope''s option.