GILT - Why Gilat Satellite Networks Stock Dropped 14% Today
Shares of Gilat Satellite Networks (NASDAQ: GILT), a manufacturer of communications equipment -- specifically, satellite ground stations and related equipment -- saw its stock pummeled in Wednesday trading, closing the day down 14.4%.
The reason: Earlier today, Gilat rival Comtech Telecommunications (NASDAQ: CMTL), which is in the process of attempting to acquire Gilat, filed a complaint against its target alleging that Gilat is taking "certain actions" that might decrease its value to Comtech.
Comtech also noted in its complaint that a "precipitous decline in Gilat's business since January 29, 2020" may give it grounds to terminate its offer to acquire Gilat.