CREE is a sympathy play on CLRK aquisi

Discussion in 'Stocks' started by executioner, Jun 19, 2007.

  1. Clark was aquired today.. CREE might move up as speculation mounts on the next take over target in LED..CREE is one of the only company's left.
  2. topdown


    CREE was also a major holder of CLRK:
    Cree to cash in on sale of Boston company
    Tuesday June 19, 10:08 am ET
    Durham lighting concern Cree will be rolling in the dough under terms of a deal announced Tuesday.
    Boston lighting company Color Kinetics said Tuesday that it's agreed to be bought by Dutch firm Royal Philips Electronics for $791 million. The cash deal, worth $34 per share, will be a major windfall for Cree, which as of April owned 4 percent of Color
    Based on the terms of the deal, Cree (Nasdaq: CREE) will snag $29.4 million for its 864,365 remaining shares of Color Kinetics. Added to the $24 million the company has already made from sales of Color Kinetics stock, Cree will have grossed $53.4 million from its initial $12.7 million investment in the company.
    That's a return of 320 percent.
    Philips' $34-per-share offer is a 14 percent premium over the $29.79 Monday close of Color Kinetics (Nasdaq: CLRK). It comes after Color Kinetics stock has nearly doubled in the last year - the main reason Cree has made so much on its investment.
    Shares of Philips (NYSE: PHG) moved only slightly in pre-market trading. Color Kinetics jumped 12.7 percent to $33.58, and Cree went up 3.8 percent to $25.87.
    Published June 19, 2007 by the Triangle Business Journal