Symbol Technologies, a world leader in the manufacturing of handheld computers, radio data communications and barcode scanning products have confirmed that it recently sent a letter to Telxon Corporation expressing Symbol`s serious interest in acquiring all outstanding shares of Telxon Corp, a supplier of wireless and mobile information systems. The offer is for $38 cash per Telxon share, valuing the company at slightly more than $800 million. Symbol said it is prepared to negotiate all aspects of a potential transaction. To the extent the form of consideration consists of cash, Symbol does not envision that a negotiated transaction would be subject to a financing out. Symbol has been advised by its legal counsel that a combination of the two companies would not present any significant regulatory issues. Symbol believes the acquisition would be immediately and significantly accretive to Symbol`s earnings per share excluding one-time charges. Symbol`s interest remains subject to confirmatory diligence which could be completed promptly to accommodate any reasonable schedule Telxon would require. "Telxon shareholders have missed out on the greatest bull market in history. The shares are trading at 1987 levels, producing a 10-year return of zero," says Jerome Swartz, Symbol chairman and chief executive officer. Frank Brick, Telxon`s president and chief executive officer said in a statement, "The letter, dated April 8, is currently being reviewed by our financial and legal advisors and will be considered by Telxon`s board of directors in due course."
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