Pacific Internet (PCNTF) Receives a New Acquisition Offer

Posted on January 12, 2007

This morning Pacific Internet (PCNTF), a stock we’ve been holding since last February, finally received a new acquisition offer from Asia Netcom, for about $10.15 per share. Interestingly, this new offer is close to the valuation we suggested for the shares back in June, when MediaRing upped their offer. A full discussion of the valuation scenarios for PCNTF can be found by clicking here.

So what should you do with you shares of PCNTF given the new, higher offer? Well, we’re still holding on. Given the significant increased valuations for IP Service Providers worldwide over the last six months, we think that $10.15 per share is not a fair valuation for PCNTF. Therefore, we don’t expect management to favor this offer and it’s possible that additional bids for the company will come in.

Please Note: We first recommended Pacific Internet (PCNTF) at $7.60, and still hold a position in the stock. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.

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    This site may include market analysis and we may own shares in the stocks mentioned in our reports. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.