Anadigics, Inc. (NASDAQ:ANAD) Nearly Hit the Acquisition Price

[[tagnumber 0]]Yesterday the stock of Anadigics, Inc. (NASDAQ:ANAD) opened the market just a cent below the share price at which the company will be acquired as announced just a few minutes before trading began in the last session. The latest quarter report of ANAD reveals that it is probably the best time to sell the business.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]ANAD close yesterday at $0.338 for a share, making thus an over 40% gain from the previous close. The trading volume of around 9 million traded shares was not a record though, being still lower than the huge trading activity in August this year when the company lost half of its value on the stock market.[[tagnumber 1]] [[tagnumber 0]]The stocks‘ upside potential is limited as ANAD has entered into a definitive merger agreement with Aloha Holding Company, Inc. Under the terms of the agreement, the buyer has taken the obligation to commence a tender offer to purchase all issued and outstanding shares of ANAD at a purchase price of $0.35 per share, which seems fair[[tagnumber 8]]. After the deal is completed, ANAD will be a wholly–owned subsidiary of Aloha.[[tagnumber 1]] [[tagnumber 0]]ANAD is a manufacturer of RF semiconductor solutions for mobile communications and data transmissions markets. During this year‘s third quarter, the company‘s sales decreased by nearly 36% due to lower demand for its products. In addition, there was also a restructuring plan from 2014 that included workforce reduction and caused thus major non–operating costs.[[tagnumber 1]] [[tagnumber 0]]The net loss in the last quarter exceeded 50% of the sales, and the restructuring plan to put more emphasis on the infrastructure markets failed completely in the second and third quarter due to factors that were not predicted by the management. Also, ANAD would have had a liquidity problem if it had remained a separate entity.[[tagnumber 1]] [[tagnumber 0]]As losses in the coming quarter were likely to be much larger than expected, the company would not have remained in compliance with certain covenants under its credit line facility, and that could have led to its termination.[[tagnumber 1]] [[tagnumber 16]] [[tagnumber 1]]