Last Thursday was the deadline for bids to acquire Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR). One of the bidders was Sigma Wave Ltd., a private company based in Caesarea and controlled by Arie Trabelsi. Sources inform ''Globes'' that Sigma Wave has submitted a new offer as part of Alvarion receiver Yoav Kfir's review of the offers.
Sigma Wave is offering to acquire Alvarion's activity for a capital injection of tens of millions of shekels, provided that the company is acquired as a going concern and that its employees are brought back to work immediately. If the offer is accepted, there will be a need for a creditors settlement, under which some creditors may have to write off some of Alvarion's debts to them, or to reschedule them over a longer period.
Kfir said in his preliminary report that Alvarion owed its creditors $24 million. This figure includes $3.3 million owed to Silicon Valley Bank, which initiated the receivership proceedings, $17.5 million owed to suppliers, $1.6 million owed to employees, and the rest owed to banks, municipalities, and the Office of the Chief Scientist.
Sigma Wave's offer includes awarding Alvarion shares to employees who stay at the company. Current shareholders will see their stakes sharply diluted.
Sigma Wave told "Globes" in response that it had submitted a bid to the receiver, but declined to confirm the details.
Last week, Alvarion's share price rose over 500%, on reports of offers to acquire the company.
Published by Globes [online], Israel business news - www.globes-online.com - on August 20, 2013
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