ABB -8.67%: shares were back trading after the company raised $120m through a placement to help fund the acquisition of Symbio (SYM). We like the acquisition from several perspectives. ABB is raising money at a higher multiple so the deal will be EPS accretive, while we see plenty of revenue and cost synergies to come out of the deal for telco-as-a-service business Symbio. The raise represents 14% of existing shares on issue, a pretty decent chunk, and was completed at a 9.4% discount to the last close. Shares managed to finish above the placement price today after briefly trading underwater part way through the session. Retail holders will get an opportunity to apply for shares through a Share Purchase Plan (SPP) at $3.55/sh or a 2% discount to the 5-day CWAP up to Wednesday 29th November with the company looking for up to an additional $20m
MM remains long and bullish ABB
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