INFN Drop

There have been a few rumblings on the Infinera boards that today’s drop may have been caused by Transmode’s shareholders exchanging their INFN shares for cash.

7.9 million shares of Infinera common stock were delivered to Transmode holders today. Today’s volume was 3.6M shares (about 3x the normal). I suppose a decent guess could be that some Transmode shreholders decided to sell their INFN shares if today was their settlement date. As for an attempt to find a reason - maybe they wanted the cash option all along but had committed their votes the share/cash mix before the cash option was offered.

This is all guesswork of course. No other news was offered from Infinera today.

Best,
–Kevin

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There have been a few rumblings on the Infinera boards that today’s drop may have been caused by Transmode’s shareholders exchanging their INFN shares for cash. 7.9 million shares of Infinera common stock were delivered to Transmode holders today. Today’s volume was 3.6M shares (about 3x the normal). I suppose a decent guess could be that some Transmode shreholders decided to sell their INFN shares if today was their settlement date. As for an attempt to find a reason - maybe they wanted the cash option all along but had committed their votes the share/cash mix before the cash option was offered. This is all guesswork of course. No other news was offered from Infinera today.

Interesting observation. Thanks Kevin,
Saul

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I think you are on top of it as usual Kevin, and it makes good sense to me that this is probably what is going on. I have not checked but obviously there would be a lot of European holders of Transmode, so probably not a lot of familiarity with INFN, so why not sell out and reinvest in a national company that you feel more comfortable with, that sort of thing. I feel that if Transmode were buying Infinera I would probably raise the cash as well, because I feel more comfortable owning American based companies.
Thanks for the post.
Mike

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