Despite strong protest from some Next Level Communications Inc.
shareholders, Motorola Inc. completed its tender offer to snap up majority
ownership of the telco-video-technology company.
Rohnert Park, Calif.-based Next Level -- a spinoff from
Motorola acquisition General Instrument Corp. -- makes video products that run
on digital-subscriber-line networks.
Motorola already has a 74 percent stake in the company, and with this move, it
would add another 13.3 million shares, raising its total to about 88.7
The consumer-electronics and cable-gear giant plans to snap up the remainder
through a merger tender offer.
Under that offer, Motorola would pay shareholders $1.18 per share.
That is a higher price than Motorola's original $1.04-per-share offer, which
set off a cadre of Next Level shareholders.
They claimed that it was a lowball offer designed to undermine the
Motorola pushed back the tender offer deadline five times as it tried to
resolve the dispute, but it finally closed the process Friday.
Once the deal is complete, Next Level will no longer be listed on the NASDAQ
exchange, according to Motorola.
"With the tender offer successfully behind us, we can
now begin the important work of reintegrating Next Level's business into our
operations, providing a sound financial base to continue its development of
compelling broadband solutions to wireline operators," said Christopher B. Galvin, Motorola's chairman and CEO, in a release.