European Event-Driven Analyst

Jesus Rodriguez Aguilar

Jesús is an Insight Provider (Event-driven) on the Smartkarma network, where he looks across sectors at opportunities arising from securities mispricing (both credit and equity), share classes, bid announcements, prospective bids, and special situations. He has served as Economic and Business Advisor at the Spanish Congress in Madrid. Prior to that, he has worked in the City of London: as a Credit Analyst at Bloomberg; Event-driven associate at former boutique European Research; and doubled as Special Situations and Equity-linked VP (convertible bonds) at Merrill Lynch. Jesús has an MBA from the London Business School, a BA (Hons.) degree in Economics from the Complutense University in Madrid, and a BA (Hons.) in Law from U.N.E.D., also in Madrid.

Keysight/Spirent: Recommended Competing Offer

UK Competition Regulator Clears Keysight/Spirent Deal

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/viavi-solutions-inc" target="_blank" data-smartkarma-citation="entities:15310:1" rel="noopener">Viavi Solutions (VIAV US)</a> and <a href="https://www.smartkarma.com/entities/spirent-communications-plc" target="_blank" data-smartkarma-citation="entities:22160:1" rel="noopener">Spirent Communications (SPT LN)</a> have agreed a cash acquisition via Scheme at 175p (61% premium, 2.5x EV/Fwd Revenue) with just 0.23% irrevocable undertakings. </li>
<li>The opportunity seems good enough so that Viavi (BB) will stretch even more its balance sheet, although Silver Lake is providing 1/3rd of the funds needed.</li>
<li>Gross spread is +0.11%. I believe that shareholders are holding for a sweetening; quite possibly this is a target for activists too. Risk/return seems attractive. Long.</li>
</ul>



Viavi Solutions (VIAV US) and Spirent Communications (SPT LN) have agreed a cash acquisition via Scheme at 175p (61% premium, 2.5x EV/Fwd Revenue) with just 0.23% irrevocable undertakings. 
The opportunity seems good enough so that Viavi (BB) will stretch even more its balance sheet, although Silver Lake is providing 1/3rd of the funds needed.
Gross spread is +0.11%. I believe that shareholders are holding for a sweetening; quite possibly this is a target for activists too. Risk/return seems attractive. Long.


Viavi/Spirent: Management Throw in the Towel but Shareholders Likely to Hold