If this is the traditional takeover waltz then ADIC has invited Overland to dance. Chris Calisi's company has looked at what is on offer and said 'No thanks.' Now ADIC has to be more persuasive.
It's put up time. Overland has suggested that ADIC isn't really serious. If ADIC really wants to buy Overland then it needs to make a more tempting offer, one that has a significant premium, rather than its $7.90 a share offer. Overland shares are currently trading at just over $8.00.
This is a well-known game. Peter van Oppen and his team will have anticipated the Overland move and have the ADIC response already planned out in principle. What's next might be close attention paid to Overland shareholders but they'll probabably want a golden hello from ADIC. Cash now for some of them please, because they want to bail out having seen their Overland shares drop from a high point of over $17 earlier this year. How much would be needed for enough of them to accept and make the ADIC takeover attempt succeed? Something in the $12 -14 a share area from ADIC might perhaps get shareholders to move.
Overland is buying back its share in the open market to increase shareholder value, i.e. please shareholders and make it a little costlier for ADIC to buy more shares.
Co-incidentally Overland has just announced another new OEM agreement, a relatively minor one, but it all helps. Dynamic Solutions International, a data processing and storage management provider for the Unisys and open-systems markets, is going to OEM the REO 4000 and 9000 d2d products with the Protection OS and NEO 2000 tape library. Great timing.