Vocus Communications has struck a recommended deal to acquire...

Vocus Communications has struck a recommended deal to acquire Amcom Telecommunications at about $2.42 a share. This represents a 30 per cent premium to Amcom’s volume weighted average price prior to the announcement of merger talks between the two companies.
Both companies went into a trading halt at lunchtime, ahead of the deal’s announcement.
In October, Vocus raised its stake in Perth-based telco Amcom from 5 per cent to 10 per cent for an estimated $50 million and offered to merge the two companies.
Under Vocus’s proposal, Amcom shareholders would hand over their holdings in exchange for Vocus shares. Both sides agreed the move could work as they own fibre cable networks on different sides of the country that can be combined to provide a better national service.
However, Vocus switched gears the following month, suggesting a friendly acquisition that could create one of Australia’s biggest providers of phone, internet and technology services, with a market capitalisation of more than $1 billion.
At 1.30pm on Wednesday, Vocus had a market cap of $598.5 million while Amcom was valued at $628.7 million.


Read more: http://www.smh.com.au/business/mark...rges-higher-20141217-3mpix.html#ixzz3M7ddSrFK