Comtech to remain independent after testing the waters on a merger
Fred Kornberg, president and chief executive at defense electronics contractor Comtech Telecommunications Corp. on May 15, 2003, in Melville. Credit: Newsday / Alejandra Villa
Comtech Telecommunications Corp. has decided to end its examination of a possible merger or sale and remain independent, the Melville company said Tuesday.
The maker of telecommunications equipment said in August that it had hired Citigroup as its financial adviser and Proskauer Rose as its legal counsel to review potential transactions.
"Our board concluded that the company is best positioned to maximize shareholder value by continuing to execute on its strategies of enhancing its leadership positions in the markets we serve, participating in emerging technologies that enhance or expand our product portfolio, carefully pursuing acquisitions of businesses and technologies, and returning cash to our shareholders," Fred Kornberg, Comtech's chairman and chief executive, said in a statement.
Comtech shares gained .4 percent to close at $38.95 in trading Tuesday, but fell more than 5 percent to $36.99 in after-hours trading shortly after the statement's release.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
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