Dec 30, 2004This 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.
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