NPTN - NeoPhotonics trades above $16/share deal on bidding war potential

NeoPhotonics (NYSE:NPTN) earlier traded through its $16/share agreement with Lumentum (NASDAQ:LITE) as some investors appear to be betting on a potential bidding war. NeoPhotonics shares jumped 37%. While Needham analyst Alex Henderson doesn't see an alternative bidder as likely, he said the stock may see $17-$18 with a rival bidder. He said he can't rule out II-VI (NASDAQ:IIVI) as a potential buyer, though II-VI is currently purchasing Coherent Inc. (NASDAQ:COHR), a deal still awaiting Chinese antitrust approval. "We note LITE is stating the purchase is `immediately accretive on closing' with $50 million in synergies over 24 months," Henderson wrote in a note. "This could incentivize others to bid. II-VI can't be ruled out. Their CEO is pretty aggressive." He added there are some other industry players that could also be interested and he sees little potential downside for NPTN shares given the Lumentum $16 deal. Investors may be betting on a

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NeoPhotonics trades above $16/share deal on bidding war potential