This is How Future iPhones Will Know Who You Arehttp://www.fool.com/investing/general/2012/07/27/this-is-how-future-iphones-will-know-who-you-are.aspx Evan Niu
July 27, 2012
They don’t happen all too often, but Apple (Nasdaq: AAPL ) has made another acquisition. This time, the target is the mobile and network security company AuthenTec (Nasdaq: AUTH ) , for $8 per share. It's a roughly 58% premium for the smaller company that pegs the deal’s price at $356 million.
Never heard of ‘em?
Interestingly, shares have surpassed that $8 threshold during trading, reaching as high as $8.83 so far, as of this writing. Analysts are chalking this up to the possibility that a bidding war may erupt with rivals Google (Nasdaq: GOOG ) or Samsung stepping up with an offer, especially as both are currently customers of AuthenTec (via the Motorola subsidiary, in Google’s case).
If any competing bids do materialize, though, they'll have to be unsolicited, because AuthenTec is now subject to a "no-shop" restriction to solicit alternative proposals, according to the merger agreement. It’s not allowed to provide information or participate in talks in these cases, but it can do so with unsolicited offers.
As a public company, the prospective pair will have to jump through the standard loops of various regulatory approvals and shareholder votes. Until then, it’s possible for competing bids to show up. Apple might also keep offering some of AuthenTec’s current products to rivals to avoid being accused of locking down the technology and subsequent antitrust implications; but, surely, future innovations would be off the table for competitors.