NEW YORK (TheStreet) - Shares of
Comverse Technology fell nearly 4% on heavy volume after the company announced plans to spin off its main operating unit, disappointing investors hoping for an outright buyout.
The stock closed Wednesday at $6.29, down 26 cents, on volume of 8 million, more than eight times the issue's trailing three-month daily average of around 950,000.
"Recall Comverse has been looking to unlock value from its inefficient holding structure for years, and this kicked into higher gear following the resolution of the accounting review in September which opened additional options," RBC Capital Markets analyst Daniel Meron wrote in a report. "Our sense is that Comverse did not receive the adequate valuation from prospective bidders for its assets and moved to a break-up via the public market."
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