The stock of Altium Ltd [OTCPINK: ALMFF] bounded at the previous close, surging 37.41% to $29.640. Volume on Altium stock was 3.87K against an average volume of 938 over the past 30 days. The value of ALMFF stock during the last 52 weeks ranged from $18.720 to $30.380. ALMFF stock soared upon learning of the takeover bid.

An acquisition bid for ALMFF was made by who?

Altium is a global software company with its headquarters in San Diego, California. Through electronic innovation, the ALMFF accelerates technology advancement. Altium is known for creating software that maximizes engineers’ and PCB designers’ productivity for over 30 years. ALMFF software is used to design and realize electronic products worldwide by more designers and engineers, from individual inventors to multinational corporations.

In a statement released on Monday, Autodesk confirmed that it has proposed a non-binding scheme of arrangement for the acquisition of all outstanding common stock of Altium Limited for AUD$38.50.

With ALMFF’s solutions, Autodesk would be able to deliver significant, certain, and immediate value to its shareholders while enabling customers unique opportunities. On June 4, 2021, one business day before Altium announced Autodesk’s proposal, ALMFF’s closing price of AUD$27.21 was 41.5% above the proposal and 47.4% above the one-month volume-weighted average price.

However, ALMFF rejected the bid, why?

As its shares surged near six-month highs, Altium (ALMFF) rejected a $3.9 billion takeover bid saying it was too low but kept the option open for a higher offer. Despite the fact that analysts stated that the company was valued at 17 times forecast sales in 2022 or 44 times earnings forecasts, ALMFF rejected this approach. “ALMFF will evaluate all possible strategic alternatives” in conjunction with engaging with interested parties for an appropriate valuation.