MKSI - Lumentum unlikely to walk from Coherent without sweetener Needham says

Lumentum (LITE) is unlikely to withdraw its offer for Coherent (COHR) without sweetening the deal, Needham wrote, after MKS Instruments (MKSI) put in a rival bid earlier.Lumentum is likely to use a mix of cash and stock if the company decides to bump its bid for Coherent, according to Needham analyst Alex Henderson. Lumentum may offer a 50/50 mix of cash/stock and the deal could still be accretive within 12 months.LITE has lot of debt capacity and the company is a "cash generating machine," Henderson wrote.The $150m of cost synergies in a Coherent deal appears to be "highly conservative."MKS Instruments dropped 7.7%, Coherent gained 13%. Lumentum fell 1.1%.Earlier, Wouldn't be surprised to see Lumentum forced to raise its Coherent bid, Stifel says.Earlier, NeoPhotonics (NPTN) gains after MKS Instruments makes competing bid for Coherent.

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Lumentum unlikely to walk from Coherent without sweetener, Needham says