ARM Holdings Up 44% On Softbank Acquisition; Analyst Sees 'Limited Possibility Of A Counter-Bid'

Shares of Apple Inc. AAPL ARM Holdings plc (ADR) ARMH surged by 44 percent early Monday morning after the company announced its Board of Directors reached an agreement to be acquired by Japan-based SoftBank for 1,700 pence per London-listed ARM share.

SoftBank's offer also represents a value of $67.27 for each ADR-traded share and the issue has run up to $67.66 per share during the pre-market trading session.

'Limited Possibility Of A Counter-Bid'

Achal Sultania of Credit Suisse commented in a note that he sees "limited possibility of a counter-bid" and the deal with SoftBank is unlikely to be subject to any anti-trust or regulatory concern.

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Sultania noted the merger will yield the following:

1) SoftBank will run ARM as a separate entity within SoftBank and keep its headquarters in the UK

2) ARM will retain its brand, senior management and partnership business model

3) Double the employee headcount in the UK

4) SoftBank will accelerate the adoption of ARM's IP across existing and new markets

5) Increase SoftBank's investments to drive growth and innovation

6) Maintain SoftBank's dedication towards innovation.

Finally, Sultania highlighted one phrase from ARM's statement that highlights the attractiveness of the deal: "This is a compelling offer for ARM shareholders, which secures the delivery of future value today and in cash."