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Pressure is mounting on Celeritek Inc. to reconsider a buyout bid from wireless technology rival Anaren Microwave Inc.
B. Riley & Co., a Santa Monica, Calif.-based investment firm that owns about 6% of Celeritek, is urging the company to reconsider its rejection of a previous offer from Anaren.
Anaren, a Syracuse, N.Y.-based vendor of wireless radio frequency microwave components for the wireless, satellite and defense industries, in September proposed to buy all of Celeritek's outstanding shares for $8.75 a share in cash, or $107 million. Celeritek's board of directors unanimously rejected the offer.
Bryant Riley, president of B. Riley & Co., said Celeritek's poor prospects as an independent technology vendor mean the company is better off joining a larger company.
"We don't believe the company has explained clearly enough why the standalone strategy is better than the proposal from Anaren - or anybody else for that matter," he said. "We're concerned the standalone strategy will continue to result in the depreciation of the company."
Celeritek manufactures semiconductor technology for wireless broadband, voice and data transmission. A spokeswoman for the Santa Clara, Calif.-based company said any decision to reopen talks with Anaren...