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CommScope, the manufacturer of co-axial cable for communications networks, abandoned its $9.50-a-share cash bid for Andrew Corp after the wireless equipment vendor rejected its takeover offer.
The US-based company said it would not pursue the bid, valued at $1.5bn, but declined to give a reason for the withdrawal.
Andrew, a maker of equipment for wireless communications networks, broke off an agreement to be acquired for stock by rival ADC Telecommunications earlier this week but some analysts said it may still want a partner due to industry consolidation and could be waiting for a higher bidder.
The value of that deal had fallen by almost half since it was announced at the end of May as shares in ADC, which makes equipment for both fixed and wireless networks, shares sank.
“After careful consideration with our advisers, CommScope has decided not to pursue its proposal to acquire Andrew Corp at the present time,” CommScope said.
Analysts said that a merger between Andrew and CommScope could help cut procurement costs of increasingly expensive copper and plastic. Shares in CommScope closed down 1 per cent at $27.59 on Friday.
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