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TRENTON, N.J. (AP) - The $8.2 billion private investors are offering for Avaya Inc. is a good price for shareholders of the phone-systems maker and likely the most they will get, but merging with a rival could have been more strategically advantageous, an analyst said Tuesday.
A day after Avaya agreed to be bought out, its shares changed hands Tuesday at a furious rate — normal right after a deal is announced — and set a new 52-week high as investors sought quick gains or snapped up shares to hold for a sure profit when the deal is completed. Shares rose 31 cents, or 1.9 percent, to $17.03.
Meanwhile, Standard & Poor's Ratings Services late Tuesday lowered Avaya's corporate credit rating by two notches to "B+" and said the rating could be lowered further because the deal would increase Basking Ridge-based company's debt dramatically.
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