On Friday, the 30-day period that Tel Aviv District Court Judge Eitan Orenstin set for limited operations by Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) will end. Receiver Yoav Kfir is holding intensive talks with parties that have submitted offers to acquire the company in order to obtain the best solution for its creditors, employees, and shareholders.
Uncertainty over Alvarion's future has not prevented a meteoric jump in its share price. In the past week, it has risen about 400%, nearly returning to its level in early July, before Silicon Valley Bank announced that it would initiate proceedings for the appointment of a receiver for the company - the step that brought about its collapse.
The jump in Alvarion's share price to a level giving a market cap of $8.7 million before the share price fell 17.2% on Nasdaq yesterday to $0.73, bringing the market cap down to $7.2 million, appears to contravene all financial logic, since it can be assumed that whatever plan Kfir chooses will involve a massive dilution of the stakes of the company's current shareholders.
$200,000 in cash
Last Thursday, was the deadline for submitting bids for the acquisition of Alvarion. Sigma Wave Ltd., a private Caesarea-based company controlled by Arie Trabelsi, is one of the bidders. It has offered 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.
In response to enquiries by "Globes", Sigma Wave said it had submitted a bid to the receiver, but declined to confirm the details.
Another bidder for Alvarion is Valley Telecom Ltd., a consortium that includes east Jerusalem businessman Hanni al-Alami, high-tech entrepreneur Jorge Pinievsky, and businessman Peleg Hadar. This bidder too wants to acquire Alvarion in order to keep it in business, retain its employees, and pay its current debts.
A third bidder is Radwin, controlled by the Zisapel brothers, which operates in fields that complement those of Alvarion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 22, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013