Courtesy of Benzinga.
On August 14, OmniVision Technologies, Inc. (NASDAQ: OVTI) announced that the company had received a non-binding proposal from Hua Capital Management Ltd. to which a group of investors proposed to acquire all of OmniVision’s outstanding shares for $29.00 in cash.
Following the announcement, shares of OmniVision rose 15 percent to 28.29 where it closed the trading session on August 14.
Since the announcement, OmniVision shares traded sideways for a few weeks, but failed to hold the $26 level which appeared to be short-term support.
Shares continued to tumble and filled the gap that was created from the announcement, as the stock price broke the $25 level.
Shares of OmniVision were last trading at $23.34, well below the stock price prior to the takeover report.
The selling pressure may be due to the lack of communication on the takeover deal, as investors are possibly becoming impatient with the company’s inability to update shareholders on the status of the deal.
Benzinga reached out to the company several times over the past three weeks, but has yet to receive a reply.
Posted-In: News Intraday Update Movers
