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Symbol Pays for Matrics with Loan; Market Reaction Mixed
Symbol Technologies announced on Wednesday that instead of selling $287.5 million in stock to finance its September 2004 purchase of RFID tag maker Matrics, it would borrow the money.
Dec 30, 2004—This article was originally published by RFID Update.
December 30, 2004—Symbol Technologies, the Holtsville, New York-based enterprise mobility solutions provider whose September purchase of leading RFID tag maker Matrics for $230 million marked the most significant RFID industry consolidation to date, announced on Wednesday that instead of selling $287.5 million in stock to finance the Matrics deal, it would borrow the money. Given its strong cash flow, Symbol was able to negotiate the very attractive interest rate of 5% for a $250 million credit facility. The stock jumped 7% on the news, reaching $16.90. However, also on Thursday, Standard & Poor's Equity Research countered the market's positive reaction by reiterating a "sell" rating on Symbol's stock, setting a target price of only $12, less than 75% of its current price.
Read the article at TheStreet.com
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